Chennai: The European Union (EU), Russia, and Costa Rica have expressed their interest to join consultations sought by Guatemala under the World Trade Organization’s (WTO) dispute settlement mechanism against India’s sugar subsidies.
Thailand, Brazil and Australia too have sought consultations from India under the dispute settlement mechanism, alleging that New Delhi’s sugar subsidies to farmers are inconsistent with global trade rules.
The EU, Russia, and Costa Rica in separate communications to the WTO have said they have substantial trade interest in these consultations as they are major players in the sector.
The EU stated that following the end of the sugar quotas, it became a net exporter of sugar in 2017-18 marketing year, with exports increasing by 70 per cent to more than three million tonnes per year. Similarly, Russia said India’s application of the measures may have direct effect on its exports.