US lawmakers urge Biden to file WTO consultations with India

A group of US lawmakers has urged President Joe Biden to send a formal request for consultations with India at the World Trade Organisation WTO over its dangerous trade-distorting practices. 12 Congressmen said that current WTO rules allow governments to subsidise up to 10 per cent of the value of commodity production.

More than half of the value of production for several commodities, including rice and wheat, is subsidised by the Indian government, they said.

India's lack of rule-following and the Biden administration's lack of enforcement have reshaped the global agricultural production and trade channels by driving down prices, depressing production of rice and wheat commodities, and putting American producers at a disproportionate disadvantage, the Congressmen said in the letter.

India's practices are dangerously trade-distorting on a global scale and impact US farmers and ranchers, the letter read. The letter was written by Congressmen Tracey Mann and Rick Crawford.

They 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.

The US must not yield for the sake of reaching a consensus. America must work to promote solutions that will help to alleviate the global supply chain and food shortages. The lawmakers said it must take actions that address those consumers most impacted by inflation and rising food prices.

American agriculture is up to the job to build resilient conditions for food security for the US and throughout the world, they said.

India has defended its position at the WTO. Several countries and organisations have applauded India for taking a firm stand in protecting the interests of its farmers.