India Loses WTO Dispute Over Sugar-Export Subsidies



Bryce Baschuk | Bloomberg

A World Trade Organization panel ruled that India violated international trade rules when it offered excessive subsidies for the production and export of sugar and sugarcane.

India’s policies were inconsistent with WTO rules that govern the levels at which nations can subsidize domestic agricultural production, according to a decision posted Tuesday on the WTO’s website. Under WTO rules, India’s sugar subsidies are capped at a de minimis limit of 10% of the value of production.

India — the world’s largest sugar producer after Brazil — has already pledged to refrain from subsidizing sugar exports this year due to high global prices. The government previously approved a subsidy of $475 million for the 2020-2021 growing season. 

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