The Brazilian government on Wednesday (27.2.2019) asked the World Trade Organization to initiate a consultation on subsidies to the sugar industry by India, which according to the South American country are distorting world trade.
Australia has also made a similar request in a challenge to Indian government subsidies, according to a joint statement by Brazil's foreign and agriculture ministries.
Brazil says Indian subsidies have caused significant impacts on the global sugar market.
According to Brazilian government estimates, increased supplies from India could lead to a drop of up to 25,5 percent in international sugar prices in the 2018/2019 season.
This could cause losses of up to $1.300 billion for Brazilian exporters alone, the ministries said.
India's sugar production has increased significantly in recent years and the Asian country is on track to overtake Brazil as the world's largest producer of the sweetener.
In October, Reuters reported that India is expected to export sugar for the first time in three years as government subsidies made shipments lucrative.
Under WTO rules, if mandatory consultation fails to yield a satisfactory solution within 60 days, complainants can request the appointment of a panel.
Source: Reuters
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
