Congressmen Ask Biden to Hold India Accountable for Unfair Trade Practices

Published on: 02 July 2022
by KnowESG

A group of US legislators pushed President Joe Biden to file a formal request for discussions with India at the World Trade Organisation (WTO) regarding India's "dangerous trade-distorting practices."

In a letter to Biden, twelve congressmen argued that current WTO regulations permit governments to subsidise up to 10% of the value of commodity production.

According to the source, the Indian government continues to subsidise more than fifty per cent of the value of production for a variety of commodities, including rice and wheat.

In the letter, the Congressmen alleged that 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 the production of rice and wheat commodities, and placing American producers at an unfair disadvantage.

"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 United States must not yield for the sake of consensus. Instead, the United States must encourage ideas that will improve the global food supply system and reduce food shortages. Lawmakers asked that the government address those customers most affected by inflation and rising food prices.

"It is up to American agriculture to contribute to building resilient conditions for food security for the US and throughout the world," they said.

India defended its position before the WTO. Several nations and organisations from around the globe have praised India for taking a strong stance to defend the rights of its farmers.

Source: Business Standard

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