WTO Rules Against India Sugar Subsidies

The World Trade Organization ruled India is violating its WTO obligations with its sugar subsidies. A WTO panel initiated by Australia, Brazil, and Guatemala investigated India’s large sugar subsidies and found it not compatible with the country’s WTO commitments. The Hagstrom Report says an analysis done by the American Sugar Alliance notes that India is one of the largest sugar producers in the world. India produces over 30 million tons of milled sugar in most years with the support of government production subsidies and also uses export subsidies to place six to seven million metric tons of sugar on the world market. The ASA, which represents U.S. cane and beet producers, says the WTO found that India’s provision of domestic support to its sugarcane producers vastly exceeded the level permitted under WTO terms. “India has not been playing by the rules for years to the detriment of other producers,” says Rob Johansson, Director of Economics and Policy with ASA.

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