WTO rules in favor of Brazil and Guatemala in sugar dispute with India

A special group of the World Trade Organization (WTO) ruled today in favor of Guatemala, Brazil and Australia in the dispute they had with India over their domestic subsidies for the production and export of sugar cane.

The group determined that India provided between 2014 and 2018 production aid that violated the WTO Agricultural Agreement by exceeding the maximum allowed of 10%, also maintaining export subsidies that were also inconsistent with international regulations.

The dispute was brought to the WTO by Brazil and Australia in early 2019, although Guatemala joined the litigation shortly after.

The opinion will be adopted by the WTO’s Dispute Settlement Body within 20 to 60 days, unless one of the parties files an appeal.

This would mean leaving the case in the hands of the Appellate Body, the last instance in the WTO’s trade dispute resolution mechanism, whose operation has been blocked since 2019 due to the refusal of the United States to appoint new judges for its composition.