“India’s practices are dangerously trade-distorting on a global scale and impact US farmers and ranchers,” according to a letter by US Congressmen who wants to hold India accountable at WTO for dangerous trade distortion practices.
In a letter to President Joe Biden, a dozen US congressmen urged him to pursue formal discussions with India at the World Trade Organization (WTO) over what they labeled its “dangerous trade-distorting practices” which they said had an effect on US farmers and ranchers.
The Congressmen said that under the current WTO regulations, states might subsidize up to 10% of the cost of producing goods, reports Deccan Herald.
However, they said that the Indian government still pays for more than 50% of the production value of a number of commodities, such as wheat and rice.
According to the letter, India’s “lack of rule-following” and the Biden administration’s “lack of enforcement” have restructured worldwide agrarian production and commerce channels by lowering prices, depressing production of rice and wheat goods, and placing American growers at a vastly greater disadvantage.
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“India’s practices are dangerously trade-distorting on a global scale and impact US farmers and ranchers,” according to the letter. Congressmen Tracey Mann and Rick Crawford took the lead on the letter.
“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 programmes that undermine fair trade practices,” they stated.
To reach a consensus, the US must not give ground. Instead, America has to push for policies that will improve the world’s supply chain and reduce food shortages.
The legislators urged it to adopt steps that will help the people who are most affected by inflation and increasing food costs.
“It is up to the American agriculture to contribute to building resilient conditions for food security for the US and throughout the world,” they said.
At the WTO, India has reiterated its position. India has received praise from numerous nations and organizations around the world for adopting a strong stance to defend the rights of its farmers.
The Geneva-based WTO is an intergovernmental body that controls and supports international commerce. Governments use the organization to create, update, and enforce the laws that regulate international commerce.