U.S. counters India wheat subsidies at WTO for fair trade

By Jamie Martin

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) recently acknowledged the efforts of the Office of the United States Trade Representative (USTR) in submitting a counter-notification to the World Trade Organization (WTO) regarding India’s domestic support and subsidy policies for wheat and rice.

This action addresses longstanding concerns about India’s transparency around its support levels, and Argentina, Australia, Canada, and Ukraine joined the U.S. in this notification to hold India accountable.

“We appreciate that the USTR and other country delegations are working to highlight India’s trade-distorting wheat support,” said USW President Vince Peterson. “India’s government continues to be out of compliance on its commitments and its refusal to compromise on its level of support and public stockholding is blocking any progress on agricultural negotiations at the WTO. It is important to keep bringing this issue to light with hope that it will eventually pressure India to become a responsible trading partner.”

“Thank you to the USTR for their continued efforts to push India to follow through and come into compliance with their WTO commitments,” said NAWG CEO Chandler Goule. “Farmers in the United States understand the importance of supporting producers when needed. However, India’s approach is the wrong way to do it, and it is important that they follow through on their commitments.”

India’s subsidy model encourages overproduction, often creating excessive stockpiles of wheat. Occasionally, these stocks are released into global markets, leading to instability that harms farmers in other countries.

WTO guidelines limit India’s subsidy rate to 10% of total crop production value. However, the USTR’s counter-notification, based on India’s own data, reveals that India exceeded this limit in 2021/22 and 2022/23.

USW and NAWG remain committed to working with USTR and global partners to address these practices, advocating for fair competition in the international wheat market.

Photo Credit: istock-zhaojiankang