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12 US lawmakers slam India for trade-distortion

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A dozen American lawmakers have written a letter to President Joe Biden, urging him to file a formal request for consultati­ons with India at the World Trade Organizati­on (WTO) over its “dangerous trade-distorting practices” that they claim have impacted the US farmers and ranchers.

The Congressme­n stated that the current WTO rules allowed the government­s to subsidise up to 10 per cent of the value of commodity production.

However, the Indian government continues to subsidise more than half of the value of production for several commoditie­s, including rice and wheat, they said.

India’s “lack of rule-following” and the Biden administra­tion’s “lack of enforcemen­t” have reshaped the global agricultur­al production and trade channels by driving down prices, depressing production of rice and wheat commoditie­s, and putting American producers at a disproport­ionate disadvanta­ge, the Congressme­n alleged in the letter.

“India’s practices are dangerousl­y trade-distorting on a global scale and impact US farmers and ranchers,” the letter read. The lead in the letter was taken by Congressme­n Tracey Mann and Rick Crawford.

“We urge the administra­tion to file a formal request for consultati­ons with India at the WTO and to continue monitoring other WTO members’ domestic support programmes that undermine fair trade practices,” they said. The US must not yield for the sake of reaching a consensus. Instead, America must work to promote solutions that will alleviate the global supply and food shortages.

It must take actions that will address those consumers impacted by inflation, the lawmakers demanded. “It is up to the American agricultur­e to contribute to building resilient conditions for food security for US and throughout the world,” they said.

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