{"id":110705,"date":"2024-05-28T20:01:26","date_gmt":"2024-05-28T14:31:26","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=110705"},"modified":"2024-05-29T15:43:41","modified_gmt":"2024-05-29T10:13:41","slug":"sugar-subsidies-in-wto","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/sugar-subsidies-in-wto","title":{"rendered":"Brazil, Canada, EU urge India to submit timely notifications on sugar subsidies in WTO"},"content":{"rendered":"<h2><span style=\"font-size: 18pt;\"><strong>Context<\/strong><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A group of WTO members, including Brazil, Canada, and the EU, have urged India to submit timely notifications on sugar subsidies in the <\/span><a href=\"https:\/\/pwonlyias.com\/stage\/upsc-notes\/world-trade-organisation-wto\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">World Trade Organisation<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They allege these subsidies distort global sugar trade as India is a major sugar exporter.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><strong>Reasons for Urging India to Submit Timely Notifications on Sugar Subsidies at WTO<\/strong><\/span><b><\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-110860 alignright\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-29t125249762-6656fd43bde6b.webp\" alt=\"Sugar subsidies in WTO\" width=\"450\" height=\"337\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-29t125249762-6656fd43bde6b.webp 667w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-29t125249762-6656fd43bde6b-300x225.webp 300w\" sizes=\"(max-width: 450px) 100vw, 450px\" \/><\/p>\n<ul>\n<li><b>Lack of Transparency:<\/b><span style=\"font-weight: 400;\"> A key concern is India&#8217;s failure to submit timely reports on its sugar subsidies.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">This lack of transparency makes it difficult for other WTO members to assess the true impact of India&#8217;s policies on the global sugar market.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Alleged Market Distortion: <\/b><span style=\"font-weight: 400;\">Brazil, Canada, and the EU suspect India&#8217;s unreported subsidies are artificially lowering production costs, giving them an unfair advantage in the international sugar export market.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">This could potentially distort global sugar prices and harm other sugar-producing countries.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Export subsidy reduction requirementsPotential Violation of WTO Rules: <\/b><span style=\"font-weight: 400;\">The WTO sets limits on the amount of domestic support a country can provide to its agricultural sector.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">By not reporting its sugar subsidies, India raises concerns that it might be exceeding these limits and violating WTO trade agreements.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">This could lead to further disputes and potential trade sanctions.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Unresolved Dispute: <\/b><span style=\"font-weight: 400;\">The issue is further complicated by India&#8217;s ongoing appeal against a 2022 WTO ruling that declared its sugar support measures inconsistent with global trade norms.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>India\u2019s stand: <\/b><span style=\"font-weight: 400;\">Adding to the friction, India objects to the methodology used by the US and Australia to calculate its sugar subsidies.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">This disagreement highlights the need for a clear and agreed-upon method for assessing compliance with WTO subsidy limits.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<table style=\"width: 99.9794%;\">\n<tbody>\n<tr>\n<td style=\"width: 23.8381%; border-style: solid; border-color: #000000;\"><b>Country phase<\/b><\/td>\n<td style=\"width: 28.1859%; border-style: solid; border-color: #000000;\"><b>Reduction (value)<\/b><\/td>\n<td style=\"width: 31.1844%; border-style: solid; border-color: #000000;\"><b>Reduction (volume)<\/b><\/td>\n<td style=\"width: 61.2546%; border-style: solid; border-color: #000000;\"><b>Timeline<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 23.8381%; border-style: solid; border-color: #000000;\"><span style=\"font-weight: 400;\">Developed<\/span><\/td>\n<td style=\"width: 28.1859%; border-style: solid; border-color: #000000;\"><span style=\"font-weight: 400;\">Minimum 36%<\/span><\/td>\n<td style=\"width: 31.1844%; border-style: solid; border-color: #000000;\"><span style=\"font-weight: 400;\">Minimum 21%<\/span><\/td>\n<td style=\"width: 61.2546%; border-style: solid; border-color: #000000;\"><span style=\"font-weight: 400;\">6 years<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 23.8381%; border-style: solid; border-color: #000000;\"><span style=\"font-weight: 400;\">Developing<\/span><\/td>\n<td style=\"width: 28.1859%; border-style: solid; border-color: #000000;\"><span style=\"font-weight: 400;\">24%<\/span><\/td>\n<td style=\"width: 31.1844%; border-style: solid; border-color: #000000;\"><span style=\"font-weight: 400;\">14%<\/span><\/td>\n<td style=\"width: 61.2546%; border-style: solid; border-color: #000000;\"><span style=\"font-weight: 400;\">10 years<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-size: 18pt;\"><strong>Sugar Sector of India\u00a0<\/strong><\/span><\/h2>\n<ul>\n<li><b>Industry Ranking: <\/b><span style=\"font-weight: 400;\">Second largest agro-based industry in India, after cotton.<\/span><\/li>\n<li><b>Global Production Leader: <\/b><span style=\"font-weight: 400;\">India was the world&#8217;s #1 producer of sugar, with 37 million metric tons produced in 2022.<\/span><\/li>\n<li><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-110861 alignright\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-29t125245723-1-6656fd40a2b08.webp\" alt=\"Sugar subsidies in WTO\" width=\"501\" height=\"323\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-29t125245723-1-6656fd40a2b08.webp 1836w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-29t125245723-1-6656fd40a2b08-300x193.webp 300w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-29t125245723-1-6656fd40a2b08-1024x660.webp 1024w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-29t125245723-1-6656fd40a2b08-768x495.webp 768w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-29t125245723-1-6656fd40a2b08-1536x991.webp 1536w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/05\/untitled-2024-05-29t125245723-1-6656fd40a2b08-1568x1011.webp 1568w\" sizes=\"(max-width: 501px) 100vw, 501px\" \/><b>Economic Impact:<\/b><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><b>Generates livelihood for millions:<\/b><span style=\"font-weight: 400;\"> Supports sugarcane farmers and employs 500,000 sugar mill workers.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Export Leader:<\/b><span style=\"font-weight: 400;\"> India was the 3rd largest sugar exporter globally in 2022.<\/span><\/li>\n<li><b>Sugar Production in India:<\/b>\n<ul>\n<li><b>Projected Production: 36 million metric tons in market year 2022\/2023.<\/b><\/li>\n<li><b>Leading Producers: Uttar Pradesh, Maharashtra, and Karnataka.<\/b><\/li>\n<\/ul>\n<\/li>\n<li><b>Sugar Varieties in India and across the world:<\/b>\n<ul>\n<li><b>Products from Sugarcane:<\/b><span style=\"font-weight: 400;\"> Sugar, gur (jaggery), and khandsari.<\/span><\/li>\n<li aria-level=\"2\"><b>Global Sugar Categories: <\/b><span style=\"font-weight: 400;\">Brown sugar, granulated sugar, liquid sugar, and invert sugar.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<table style=\"width: 100.243%;\">\n<tbody>\n<tr style=\"height: 36px;\">\n<td style=\"width: 5694.18%; 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They allege these subsidies distort global sugar trade as India is a major sugar exporter.<\/p>\n","protected":false},"author":11,"featured_media":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2089],"subject":[2102],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/110705"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=110705"}],"version-history":[{"count":3,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/110705\/revisions"}],"predecessor-version":[{"id":110880,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/110705\/revisions\/110880"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=110705"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=110705"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=110705"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=110705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}