India Just Tabled A Major Challenge To The World's Biggest Economies At The WTO

(MENAFN- Live Mint)

NEW DELHI: In a calculated move, India has intensified its push for global trade transparency, directly challenging the US and several other nations at the World Trade Organization (WTO) over their agricultural subsidies.

This offensive comes on the heels of the US rejecting India's objections in a recent trade dispute, signalling a new, more assertive strategy by New Delhi to ensure that scrutiny of farm policies is a two-way street.

At the heart of India's critique are several US initiatives, including the $16 billion Supplemental Disaster Relief Program and the National Farm Security Action Plan, as per a WTO paper released on 17 September.

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For the scheduled 25-26 September meeting of the WTO Committee on Agriculture, India has demanded an explanation for why these new schemes are needed alongside existing support, how "shallow losses" are defined, and what financial measures are being taken to promote US farm exports, according to the document.

India's queries extend beyond the US. New Delhi has tabled more than a dozen questions for Australia, Brazil, Canada, the European Union, Japan, Paraguay, Switzerland and Thailand. Specific queries target schemes like Australia's horticulture market access initiative, Brazil's Eco Invest programme, and Canada's irrigation subsidies, as per the WTO document reviewed by Mint.

According to experts, this strategy serves a dual purpose. On one hand, it's a defensive tactic, pre-empting criticism of India's own extensive public stockholding and minimum support price (MSP) programmes, which are frequently scrutinized by developed nations. On the other, it's an offensive move, exposing what India sees as hypocrisy and a lack of transparency among countries that often demand more from developing economies.

“By questioning the US and others, India is sending a message that scrutiny cannot be one-sided. If developed members continue rolling out new support schemes without transparency, the credibility of WTO subsidy rules is at risk," said Amit Singh, associate professor, Special Centre for National Security Studies at the Jawahar Lal Nehru University.

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This push for transparency is particularly significant as it builds India's case ahead of the next WTO ministerial, where agricultural subsidies and public stockholding are expected to dominate discussions. The move underscores India's position that fair global agricultural trade can only be achieved if all members adhere to the same rigorous transparency standards.

The situation is complex though, as India itself has the longest list of pending queries at the WTO, with hundreds of unanswered questions from other members, some dating back over a decade. The updated WTO note, issued on 8 September, listed 186 unanswered questions from 2013 to 2023, along with another 51 from 2024, of which India has 30 pending as of 5 September.

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India itself operates one of the world's largest food security systems, providing subsidized grains to over 800 million people through its National Food Security Act and Pradhan Mantri Garib Kalyan Anna Yojana. These programmes, along with input subsidies for farmers, form a significant part of the nation's budget, with over ₹1.5 trillion spent in FY25 alone.

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