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Brazil escalates World Trade Organisation dispute over India sugar subsidies

File photo. Photograph:( Zee News Network )

Reuters Brasilia, Brazil Jul 12, 2019, 10.03 AM (IST)

The Brazilian government said on Thursday it had asked the World Trade Organisation to establish a panel aimed at resolving its dispute over Indian sugar subsidies, according to a joint statement by the foreign and agriculture ministries.

The WTO's Dispute Settlement Body is expected to take up Brazil's request at its meeting scheduled for July 22, the statement said. Australia and Guatemala also lodged complaints against India on Thursday, according to the ministries.

Brazil alleges that the Indian government has taken actions that distort global sugar markets. The South American country claims India doubled the minimum price for sugarcane since the 2010/2011 crop year with Indian sugar exports soaring in 2018/19 to 5 million tonnes from 2 million tonnes the prior year.

In February, Brazil had requested that the WTO start consultations on the subject but the two sides failed to reach a resolution, the statement said. 

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In February, Brazil had requested that the WTO start consultations on the subject but the two sides failed to reach a resolution, the statement said.