Sugar: Concern Increases over Subsidies in India

Costa Rican businessmen complain that because of export subsidies granted to sugar producers in India, there has been an artificial increase in production, causing prices to fall below costs.

Tuesday, August 20, 2019

Édgar Herrera, executive director of the Industrial Agricultural League of Sugarcane (Laica), explained to that "... These subsidies are greater than those allowed by the World Trade Organization, in the order of $10 billion annually. At the same time, it causes an artificial increase in sugar production, which surpasses India's internal consumption."

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Herrera added that "... There is an oversupply, which has caused sugar prices to collapse below production costs. And this causes severe damage to countries that do not have these subsidies, as in the case of Costa Rica'."

Faced with these subsidies, Australia, Brazil and Guatemala took the complaint to the World Trade Organization (WTO). So producers in Costa Rica, assembled in Laica, asked the government months ago to adhere to the complaints as "interested third parties."

The government approved the petition and, through the Ministry of Foreign Trade, took steps to join the complaints.

In the case of Guatemala, on March 25, the authorities requested WTO consultations with India, within the framework of the international organization's dispute settlement mechanism, regarding domestic support measures and alleged export subsidies granted by India to sugar cane and sugar producers.

As a result of this request, the Guatemalan authorities were notified last August 14 of the creation by the WTO of a special group to settle the dispute initiated by the Central American country.

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Sugar: Panel to Solve Disputes between Guatemala and India

August 2019

The World Trade Organization created a special group to address a complaint filed by Guatemala for alleged export subsidies granted to sugar cane producers in India.

On March 25th, Guatemala asked the World Trade Organization (WTO) to hold consultations with India, within the framework of the WTO dispute settlement mechanism, regarding domestic support measures and alleged export subsidies granted by India to sugar cane and sugar producers.

Sugar: Guatemala Seeks Settlement of Disputes with India

March 2019

Guatemala asked the WTO to review domestic support measures and alleged export subsidies granted to sugar cane and sugar producers, which are carried out in the Asian country.

Luis Miguel Paiz, manager of Asociación de Azucareros de Guatemala (Asazgua), explained to that "... Guatemalan producers are concerned about the impact of Indian subsidies on sugar production, transport, storage and export."

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The WTO found that the price band that Peru applies to imports of sugar, rice, corn and some dairy products is inconsistent with the agreements of the organization.

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A report by the Appellate Body which ruled in favor of Guatemala was announced today in Geneva, Switzerland, to the Members of the World Trade Organization-WTO.

Sugar: WTO Accepts Guatemala's Suit Against Peru

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The World Trade Organization has agreed to establish an arbitration panel to resolve trade disputes between the two countries.

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