The Hindu - International

Sorting out WTO disputes with India helped our farmers, USTR tells Senate

- Amiti Sen

U.S. Trade Representa­tive (USTR) Katherine Tai has highlighte­d sorting out WTO disputes with India as a win for agricultur­e and rural communitie­s, in her testimony before the Senate Committee on Finance on President Joe Biden’s 2024 Trade Policy Agenda, where some concerns were raised on India’s wheat subsidies allegedly hurting American farmers.

“Last June, India and the U.S. terminated six WTO disputes, and India agreed to remove retaliator­y tari€s on several U.S. products. This means improved access for chickpeas, lentils, almonds, walnuts and apples beneting farmers across the country, including in Michigan, Oregon and Washington,” Ms. Tai said in her written testimony to the Senate Committee on Wednesday.

Additional­ly, in September, India and the U.S. resolved their nal outstandin­g WTO dispute, and India agreed to reduce tari€s on several U.S. products, the USTR added.

“This means more market access for turkey, duck, blueberrie­s and cranberrie­s beneting farmers in North Carolina, Pennsylvan­ia, Virginia and Wisconsin,” she said.

Trade resolution­s

The WTO disputes settled between India and the U.S. include India’s appeal against the U.S.’ imposition of tari€s on imports of steel and aluminium products from India; the U.S.’ appeal against India’s retaliator­y tari€s; India’s renewable energy subsidies for solar cells and modules under Jawaharlal Nehru National Solar Mission; India’s appeal over similar subsidies for solar cells and solar modules by eight U.S. State government­s; U.S.’ appeal against India’s export subsidy programmes; India’s imposition of countervai­ling duties on imports of certain hot-rolled carbon steel žat products from the U.S.

The last dispute between the two, settled in September 2023, was on poultry import from Washington, as part of which India agreed to cut import duties on some farm items.

In his remarks at the hearing, Senator Ron Wyden, Chairman of the Senate Committee on Finance, alleged that India’s wheat subsidies were distorting prices and directly hurting American farmers.

“Without trade enforcemen­t, our trade laws aren’t worth the paper they are written on… India’s wheat subsidies are distorting prices and making it harder for Oregon’s farmers to compete in the Asian market,” Mr. Wyden said.

Mr. Wyden also mentioned Mexico’s “illegal shing practices” and China’s “rap sheet of unfair subsidies and trade practices”, adding these “unfair trading practices” were hurting workers in America. In discussion­s around its wheat subsidies under the MSP programme at the WTO, India has been maintainin­g its subsidies were well within the range prescribed by the WTO, and its food security programmes were necessary to support vulnerable farmers and feed the poor.

Giving her account of how the settlement of WTO disputes with India had helped U.S. farmers, the USTR gave an example of a family growing almonds in the Central Valley of California visited by her team.

“This family was impacted by India’s retaliator­y tari€s imposed in 2019, limiting their access to a vital market for their operation. We removed those tari€s and provided more economic certainty for this family and many others.”

The U.S. was India’s largest trading partner in 2022-23, with bilateral trade rising 7.65% to $128.55 billion.

(The writer is with The Hindu businessli­ne)

 ?? REUTERS ?? Clearing the air: Last June, India and the United States terminated six WTO disputes, says Ms. Tai.
REUTERS Clearing the air: Last June, India and the United States terminated six WTO disputes, says Ms. Tai.

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