• UGI USER
  • Mar 04, 2024
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WHY THAILAND SLAMMED INDIA’S FARM SUBSIDIES AT THE WTO:

Why in the news?

  • Thailand criticized India’s rice procurement program at the WTO, alleging it distorts global food prices and hurts other nations’ food security.
  • India objected to these comments, leading to Thailand replacing its WTO Ambassador.
source:medium

About Thailand’s Criticism at WTO:

  • India objected to Thailand’s criticism of its rice procurement program at the WTO.
  • Thailand, part of the Cairns Group, accused India of distorting global food prices and compromising food security.
  • India’s rice subsidies exceeded the WTO’s 10% de minimis limit, causing discontent among rice-exporting nations like Thailand.
About WTO (World Trade Organization):

●   WTO regulates global trade, established in 1995 with 164 member countries.

●   Successor to GATT, created in 1947.

●   Facilitates trade agreements, dispute resolution, headquartered in Geneva, Switzerland.

About Food subsidies:

●   Objective: Provide essential food items to the population below the poverty line in India.

●   Distribution: Through the Public Distribution System (PDS).

●   Common Items: Wheat, rice, sugar, milk, cooking oil.

●   Variability: Specific items supplied may vary by region.

Types of WTO subsidies:

Green Box: Permitted, non-distorting subsidies like research and environmental support.

Amber Box: Trade-distorting subsidies subject to reduction commitments, including price support programs.

Red Box: Forbidden subsidies causing significant trade distortions, such as export-linked subsidies.