WTO dispute panel finds India's sugar subsidy inconsistent with global norms

New Delhi: A dispute panel of the World Trade Organisation (WTO) on Tuesday ruled that India's support measures for the sugar sector are inconsistent with the global trade norms, the finding which New Delhi said was "completely unacceptable" to the country. In 2019, Brazil, Australia and Guatemala dragged India into the WTO's dispute settlement mechanism alleging that New Delhi's sugar subsidies to farmers are inconsistent with global trade rules. Brazil is the largest producer and exporter of sugar in the world.

The WTO circulated the panel's reports in the cases brought by Brazil, Australia and Guatemala in 'India Measures Concerning Sugar and Sugarcane', according to a statement by the organisation.Giving separate conclusions and recommendations on complaints by the three nations, the WTO panel stated that "we find that India is acting inconsistently with its obligations under Article 7.2(b) of the Agreement on Agriculture".

It has recommended that India bring its "WTO-inconsistent" measures into conformity with its obligations under the Agreement on Agriculture.

"We conclude that, to the extent that the measures at issue are inconsistent with certain provisions of the Agreement on Agriculture, they have nullified or impaired benefits accruing to Brazil under that Agreement".

Commenting on the development, India said that there would be no impact of WTO panel's findings on sugar on any of India's existing and ongoing policy measures in the sugar sector. India has initiated all measures necessary to protect its interest and file an appeal at the WTO.