On 07 March the World Trade Organisation (WTO) advised that Brazil and Australia had requested WTO dispute consultations with India regarding domestic support measures and alleged export subsidies provided by India to producers of sugarcane and sugar. The requests were circulated to WTO members on 05 and 07 March.
Brazil and Australia claim that the challenged measures are inconsistent with India’s obligations under the WTO's Agreement on Agriculture, with Australia also alleging inconsistencies with the Agreement on Subsidies and Countervailing Measures (SCM Agreement) and the General Agreement on Tariffs and Trade (GATT) 1994.
What is a request for consultations?
The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.
Story by: Riaan de Lange