The two countries told the WTO that they estimated that during the period 2018-19 to 2021-22, New Delhi provided sugarcane subsidies of between 91 and 100 percent, which was ” well beyond the limits set” at 10% of the value of sugar cane. food production in the case of India and other developing countries. These internal subsidies or supports are called Aggregate Measurement of Support (AMS) in business parlance.
The two countries, in a communication to the WTO on Monday, asserted that India has not included sugarcane or its derived products in any of its domestic support notifications since the 1995-96 marketing year and that , therefore, the World Trade Organization had not received any information from the New York Times. Delhi to compare the findings of the communications from the United States and Australia. The period from October to September is the sugarcane marketing season in India.
The development follows Brazil, Australia and Guatemala dragging India to the WTO dispute settlement mechanism in 2019, alleging that New Delhi’s sugar subsidies were inconsistent with global trade rules. They had also flagged India’s alleged export subsidies, subsidies under production support and buffer stock programs, as well as those under marketing and transportation programs.
In 2021, a WTO panel upheld these claims and India appealed the findings, preventing adoption of the panel’s report by the global trade watchdog’s Dispute Settlement Body.
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