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LATEST NEWS UPDATES | As midterms approach, Republicans step up rhetoric on India’s trade practices -Prashant Jha

As midterms approach, Republicans step up rhetoric on India’s trade practices -Prashant Jha

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published Published on Jul 3, 2022   modified Modified on Jul 5, 2022

-Hindustan Times

India has consistently maintained that this position is based on both an erroneous reading of the nature and intent of India’s price support mechanisms and underplays the scale of America’s support to farmers.

Washington: As elections for the House of Representatives loom, a group of Republican Congressional representatives from America’s agricultural belt or with agricultural interests have stepped up the rhetoric against India’s agricultural subsidies — alleging that these distort global trade and put American commodity producers at a disadvantage — and asked the Joe Biden administration to take up the issue against India at the World Trade Organisation (WTO).

India has consistently maintained that this position is based on both an erroneous reading of the nature and intent of India’s price support mechanisms and underplays the scale of America’s support to farmers.

On Friday, in a letter to Biden, 12 representatives in the US Congress alleged that India’s practices are “dangerously trade-distorting on a global scale and impact US farmers and ranchers”. They alleged that while WTO rules allow governments to subsidise up to 10% of the value of production of a particular commodity and export that commodity without fault, India had “abused WTO rules and subsidised more than half of the value of production for rice and wheat”.

The representatives went on to say that India did not play by the rules, a dispute settlement case against India would be widely welcomed, and added, “We urge the Administration to take our requested action through filing a formal request for consultations with India at the WTO and to continue monitoring other WTO member’s domestic support programs that undermine fair trade practices.”

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Hindustan Times, 3 July, 2022, https://www.hindustantimes.com/india-news/as-midterms-approach-republicans-step-up-rhetoric-on-india-s-trade-practices-101656790001479.html


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