A group of US lawmakers has urged President Biden, to file a formal request for consultations with India at the World Trade Organisation WTO over its “ dangerous trade-distorting practices.” 12 congressmen, in a letter to Biden, said that “the current WTO rules allow governments to subsidise up to 10% of the value of commodity production. However, the Indian government continues to subsidies more than half of the value of production for several commodities, some of which may include rice, and wheat”.
The congressmen said in the letter that India’s “lack of rule-following” and Biden administration’s “lack of enforcement” have played a big role in reshaping the global agricultural production and trade channels by driving down prices, depressing production of rice and wheat commodities, resulting in putting American producers at a disproportionate disadvantage. The lead in the letter was taken by Congressmen Tracey Mann and Rick Crawford, stating in the letter “ India’s practices are dangerously trade-distorting on a global scale and impact US farmers and ranchers.
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 programs that undermine fair trade practices.” The US must not yield for the sake of reaching a consensus, instead, America must work to promote solutions that will alleviate the global supply chain and food shortages. The congressmen have demanded that the Biden administration must take action that will address those consumers most impacted by inflation and rising food prices. They further added that “ it is up to the American agriculture to contribute to building resilient conditions for food security for the US and throughout the world.
As far as India is concerned, they have always defended their stand at the World Trade Organisation which is an intergovernmental organisation that regulates and facilitates international trade. Governments use the organisation to establish, revise, and enforce the rules that govern international trade. Many countries and organisations globally have appreciated India for taking a firm stand in protecting the interests of its farmers and agriculture.