US Congressmen ask Joe Biden to hold India accountable for 'trade-distorting practices'

A DOZEN lawmakers in the US have written to the country’s president, Joe Biden, urging him to file a formal request for consultations with India at the World Trade Organization (WTO) over its “dangerous trade-distorting practices” that, according to them, have impacted American farmers and ranchers.

The members of the US Congress said the current WTO rules permitted governments to subsidise up to 10 per cent of the value of commodity production. They expressed disappointment over the Narendra Modi government saying it continued to subsidise more than half of the value of production for many commodities, including rice and wheat.

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 US lawmakers 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 lead in the letter was taken by Republican Congressmen Tracey Mann and Rick Crawford.

“We 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,” they said.

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

“It is up to the American agriculture to contribute to building resilient conditions for food security for the US and throughout the world,” they said.

Several countries and organisations across the world, however, have applauded India for taking a firm stand in protecting the interests of its farmers.  The Geneva-based WTO is an intergovernmental organisation that regulates and facilitates international trade. Governments use the organisation to establish, revise, and enforce the rules that govern international trade.