India’s appeal against the decision of the WTO dispute panel on sugar subsidy

India has appealed against the decision of the WTO’s Trade Disputes Settlement Panel on domestic sugar subsidies

New Delhi:

The WTO on Tuesday said India has appealed against the decision of the World Trade Organization’s trade dispute settlement panel on domestic sugar subsidies, saying the panel had made “certain errors of law” in its report.

The appeal was filed by India in the Appellate Body of the WTO, which is the final authority on such trade disputes.

In a statement, the World Trade Organization said, “India notified the dispute settlement body about its decision to appeal the panel report ‘India – Measures with respect to sugar and sugarcane’ in cases brought by Brazil, Australia and Guatemala.” has done.”

It said that in view of the ongoing lack of agreement among the WTO members regarding filling of vacancies of the Appellate Body, no Appellate Body Department is available at the present time to deal with the appeals.

The panel, in its decision on December 14, 2021, recommended India to withdraw its alleged restricted subsidies under production support, buffer stock and marketing and transport schemes within 120 days of the adoption of this report.

Ruling in favor of Brazil, Australia and Guatemala in their trade dispute against India over New Delhi’s sugar subsidies, the WTO panel has said the support measures are inconsistent with WTO trade rules.

In its submission to the appellate body, India has appealed and requested the body to “reverse, modify, or declare controversial” the panel’s findings, findings, decisions and recommendations with respect to certain “errors” and no legal effect. Not there”. law or legal interpretation contained in the panel report”.

India has sought a review of the panel’s findings that it plans to provide support to sugar mills for expenditure on marketing costs, including handling, upgradation and other processing costs and on international and internal transportation costs and on sugar exports for 2019. Freight charges included – 20 Chinese Seasons (MAEQ Scheme), is within its terms of reference.

“The panel has erroneously assumed that the MAEQ scheme has the same essence as the other alleged export subsidies identified in the complainants’ requests for setting up a panel. India recognizes that the panel has selected some broad similarities, while ignoring of difference between MAEQ and other alleged export subsidy measures,” according to an India communication circulated to the members.

New Delhi has also said that the panel has erred in finding that India’s fair and remunerative price and state-advised price is market price support under the WTO’s agriculture agreement.

In 2019, Brazil, Australia and Guatemala dragged India into the World Trade Organization’s dispute settlement mechanism, alleging that New Delhi’s domestic support measures for producers and export subsidies of sugarcane and sugar are inconsistent with global trade rules, including on various provisions of the World Trade Organization agreement. Agreement on Subsidies and Countervailing Measures, and the General Agreement on Trade and Tariffs (GATT).

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