India and Brazil are negotiating a sugar dispute at the World Trade Organisation (WTO). According to PTI, the Ministry of Commerce is consulting with relevant departments. India is adopting a similar procedure for other WTO petitions related to the sugar conflict.
Brazil, Australia, and Guatemala hauled India into the WTO’s dispute settlement process in 2019, claiming that India’s sugar subsidies to farmers violate global trade laws. According to PTI, the Department of Commerce is consulting with all relevant ministries to come up with suitable options. This issue gained traction after a WTO dispute settlement tribunal concluded on December 14, 2021, that India’s sugar sector support programmes are incompatible with global trade norms.
In January 2022, India filed an appeal with the World Trade Organization’s Appellate Body, which is the last authority on such trade disputes. Brazil is the world’s top producer and exporter of sugar, with India coming in second. WTO members Brazil, Australia, and Guatemala had complained that India’s support measures for sugarcane producers exceeded the de minimis standard of 10% of total sugarcane production, which they claimed violated the WTO’s Agriculture Agreement.
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