For Immediate Release: November 12, 2024
Contact:
Steve Mercer, Vice President of Communications, U.S. Wheat Associates, smercer@uswheat.org, (913) 449-4134
Elizabeth Rivera, Director of Communications and Partnerships, National Association of Wheat Growers, (916) 217-2964, erivera@wheatworld.org
Another Welcome Check on India’s Wheat and Rice Subsidies From USTR
Washington, D.C. (November 12, 2024) – U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) today praised the Office of the United States Trade Representative (USTR) for submitting a counter-notification to the World Trade Organization (WTO) on India’s domestic support, input subsidies, and market support prices for wheat and rice.
This is the latest in a series of U.S. counter-notifications showing India is not transparent about the true level of wheat and rice support it provides. Joining the United States in this notification were the governments of Argentina, Australia, Canada, and Ukraine.
“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 wheat support schemes incentivize overproduction and discourage farmers from growing other crops. This has led to massive public stocks of wheat that the Indian government has at times dumped onto international markets. The disruption it causes harms farmers in exporting countries and their customers who benefit from stable markets.
Under its WTO commitments, India may provide subsidies equal to no more than 10% of the total value of crop production. In marketing years 2021/22 and 2022/23 covered in the counter-notification, the United States and other countries demonstrate through India’s own data that its support level far exceeds that limit.
USW and NAWG are committed to working with USTR and other government officials to address these challenges and to ensure that U.S. wheat farmers have a fair chance to compete in the global marketplace.
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