Australia threatens India to take legal action at World Trade Organization over sugar subsidies as its domestic producers have been hurt from “significant downturn” in world prices.
India is the second-largest sugar producer in the world after Brazil and last season the country reported record production. Australia is third-largest exporter in the world.
Australian Trade Minister Simon Birmingham said Friday the country will support right of their sugar industry and to utilize well-established global trading along with set rules that would defend interests of farmers.
Birmingham said, “Whilst we support efforts by countries to develop their agricultural industries, these efforts need to be consistent with their WTO obligations and applied in a manner that doesn’t distort global trade.”
Later this month Australia would have formal discussions with India and other WTO members such as Brazil, Thailand and Australia. Birmingham believes WTO action would be supported by other countries.
In 2018 sugar futures in New York lost 17 percent.
Two days before prime ministers of both the countries met in Singapore on the sidelines of a regional summit.
Australian PM said to the media he wants the issue to be solved within the framework of “good relationship”.
Sugar industry in Australia is valued Aus$2 billion (US$1.46 billion) and has 4,000 cane farms as well as 24 sugar mills. Lately the industry is suffering losses due to India’s subsidies.
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