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United States issues WTO’s first counter-notification against India

Photo Courtesy of U.S. Embassy & Consulates in India

The United States submitted a counter notification with the World Trade Organization’s (WTO) Committee on Agriculture (COA) over India’s market price support for wheat and rice. United States Secretary of Agriculture Sonny Perdue and U.S. Trade Representative Robert Lighthizer announced the move yesterday.

“The United States expects our trading partners to comply with the reporting requirements they agreed to when joining the WTO,” said Ambassador Lighthizer. “Accurate reporting and improved transparency of these programs is an important step in ensuring that our trading partners are living up to their WTO commitments and helps achieve more market-based outcomes through the multilateral trading system.”

“American farmers are the most productive and competitive in the world, and with free and fair trade, they always do well in the international marketplace,” Secretary Perdue said. “India represents a massive market, and we want greater access for U.S. products, but India must be transparent about their practices. For trade to be free and fair, all parties must abide by their WTO commitments.”

The United States claims that India has underreported their market price support for rice and wheat. India’s price supports far exceeded allowable levels set in the WTO Agreement on Agriculture methodology.

The United States is seeking a discussion on how India implements its policies at the next COA meeting in June.