WTO Finds India Sugarcane Subsidies in Violation of WTO Obligations

The World Trade Organization found that India is not acting in line with its agricultural commitments, three Dec. 14 panel reports concluded. The panels, which surveyed claims from Brazil, Australia and Guatemala into India's domestic support to sugarcane producers, found that for five consecutive sugar seasons, India gave non-exempt product-specific domestic support to these producers in excess of the permitted 10% level of the total value of sugarcane production. In all three claims, the WTO panel found that India was providing subsidies that run contrary to its WTO obligations via the Production Assistance, the Buffer Stock, and the Marketing and Transportation schemes, and that these schemes are contingent on export performance. With respect to Australia's claims, the panel also found that India's Duty Free Import Authorisation schemes are subsidies contingent on export performance and thus in violation of WTO commitments. The panel, in each case, recommended that India "withdraw its prohibited subsidies under the Production Assistance, the Buffer Stock, the Marketing and Transportation, and the DFIA Schemes within 120 days from the adoption of our Report."