Sugar Export Subsidies at WTO - The Reason
- Brazil, Australia and Gautemala complained about India to WTO.
- They complained that domestic support provided by India to sugar producers is in excess of limit allowed by WTO.
- India also provides prohibited export subsidies to sugar mills.
- WTO ruled in favor of complaining countries.
- WTO panel stated that support measures provided by India are inconsistent with its obligations under Agreement on Agriculture (AoA)
- India has challenged the ruling in WTO’s appellate body.
- It is the final authority on such trade disputes.