WTO: Brazil Offers Ethanol Tech to India

  Sep 19, 2023

India,Brazil and WTO:Sugar Subsidies

World Trade Organization (WTO).
As part of the resolution, Brazil may share its ethanol production technology with India, a positive development in the ongoing talks. Here are the key points:

Background: Brazil is the world's largest producer of sugarcane and ethanol, and it excels in ethanol production technology.
Trade Dispute: In 2019, Brazil, along with Australia and Guatemala, filed a complaint against India at the WTO, alleging that India's sugar subsidies to farmers violated global trade rules.
WTO Ruling: In December 2021, a WTO dispute settlement panel ruled that India's support measures for the sugar sector were inconsistent with global trade norms.
India's Appeal: In January 2022, India appealed against the panel's ruling to the WTO's appellate body, which is the final authority for such disputes.
However, the appellate body is currently non-functional due to disagreements among member countries regarding the appointment of its members.
Resolution Efforts: India and Brazil have engaged in discussions to resolve the dispute amicably.
Brazil has offered to share its ethanol production technology with India, which can help reduce India's dependence on oil imports and cut carbon emissions.
Trade Benefits: Ethanol, derived from sugarcane and other agricultural products, is blended with oil to power vehicles.
Increased use of ethanol can reduce India's heavy reliance on oil imports and contribute to environmental sustainability.
Other Trade Disputes: India and the US recently resolved six trade disputes, including the termination of certain tariffs and granting market access for specific products.
India is following a similar process to address the concerns of other complainants in the sugar dispute at the WTO.
In summary, India and Brazil are actively working towards resolving their sugar-related trade dispute at the WTO, with Brazil offering ethanol production technology as part of the solution.
This has the potential to benefit both countries and promote sustainable energy practices.


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