WTO rules against India canegrower subsidies in ‘emphatic’ decision
The WTO has sided with Australia in ruling India must scrap its ‘blatantly unfair’ subsidies to growers. Read why India will reject the decision.
Mackay
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Sugar cane farmers are rejoicing over the World Trade Organisation’s “emphatic” decision to force India to scrap measures that cost them $1bn in lost revenue.
Canegrowers Queensland chairman Paul Schembri said the WTO ruled in Australia, Guatemala and Brazil’s favour on Tuesday in recommending India remove its grower subsidies had distorted the global market price of sugar which in turn caused prices to plummet.
“We’re delighted,” Mr Schembri said.
“Obviously the WTO last night has delivered a very emphatic and comprehensive win.
“Not only is this a win for three countries – that’s Australia, Brazil and Guatemala – there’s about 25 other countries that have been third-party supporters.”
Mr Schembri said he commended the Australian government for taking on the three-year fight to stop what he said was “blatantly a breach” of WTO rules.
“Now I guess we hope that India will respond to this decision and they start in good faith discussions with Australia, Brazil and Guatemala,” he said.
“It’s a complex process, we’re not anti Indian farmers, I make that point very strongly but by the same token, we have to stand up for the Australian cane farmers.
“We’ve taken a whack – that’s growers and millers – to the tune of a billion dollars in the last four years.
“We know that if the industry suffers, in economic senses, the regional economy suffers as well.”
India is the world’s second largest sugar producer after Brazil.
International media reports have indicated India will appeal the WTO’s decision.
Trade Minister Dan Tehan, in a joint statement with Agriculture Minister David Littleproud, said Australia would continue defending its producers using the WTO to resolve differences.
“Australia’s use of the WTO in this matter is consistent with its previous use of the WTO and aligns with our support for the rules-based trading system,” they stated.
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