Guatemala Involves India in WTO’s Clash Over Sugar Subsidies

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Guatemala has pursued intervention of India under the laws and procedures that regulate the settlement of conflicts of the Geneva-based WTO. The nation also articulated that it is anticipating India’s response to the current proposal to set a jointly convenient date for discussion. According to the Guatemala statement submitted to WTO, they have filed a disagreement under specific articles of the body’s agreement on subsidies, tariffs, trade, countervailing measures, and agriculture. This dispute pertains to domestic backing measures preserved by India in support of sugar and sugarcane producers and export subsidies for sugar and sugarcane.

Guatemala Benefits from India’s Domestic Support Procedures

The country supposes that India upholds different local support procedures in favor of sugar and sugarcane traders. This mechanism regulates sugar prices and operates at the federal level via reasonable charges. Some of these measures relate to the minimum selling price for sugar, financial support to sugarcane manufacturers like production subsidies for grinders, and maintenance for buffer supply to counter-weigh price arrears.

Apart from the local support dealings, India also finances sugar and sugarcane exports to mills on condition of compliance with least export quotas. Other support includes subsidies for transport, export merchandise shipping, consignment, and handling.

Guatemala Looks Forward to India’s Response

Guatemala believes that the regulations identified seem to be inconsistent with the specific articles of the agreement on agriculture. This consideration is because they give product-specific local support for sugarcane above ten percent, the minimum quantity. The central American nation states that India did not arrange for domestic support bargain responsibility. It also noted that India’s local provision measures might not surpass the ten percent minimum level. Guatemala reveals that it is expecting to receive India’s response to the current request since taking consultations is a fundamental step of settling a dispute. If the two countries do not reach a joint solution via meetings, India might ask for the WTO dispute resolution boards to revise the issue.

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