The US and Canada yesterday said they have jointly approached the World Trade Organization (WTO) against India for allegedly "under-reporting" market price support (MSP) for five varieties of pulses and have submitted their own steeper calculations for scrutiny of members.
The countries accused India of under-reporting its market price support for chickpeas, pigeon peas, black gram, moong beans, and lentils.
Read the details here.
'India's MSP exceeds WTO's allowable level of trade-distorting domestic support'
"Based on United States/Canadian calculations, it appears that India has substantially underreported its market price support for chickpeas, pigeon peas, black matpe (black gram), moong beans and lentils," a US Department of Agriculture release stated.
"When calculated according to WTO Agreement on Agriculture methodology, India's market price support for each of these pulses far exceeded its allowable levels of trade-distorting domestic support," it said.
US, sponsored by Canada, submitted counter notification on February 12
US Trade Representative Robert Lighthizer and Secretary of Agriculture Sonny Perdue said the US on February 12 has submitted a counter notification, co-sponsored by Canada, in the WTO Committee on Agriculture (COA) on India's MSP for the five types of pulses.
Issues include quantity of production and prices used in calculation
The two countries have taken issue with the quantity of production used in market price support calculations, the lack of information necessary to assess WTO compliance, problems with currency conversions and the prices used in the calculations.
The US expects a robust discussion on how India implements and notifies its policies at the next COA meeting, which is scheduled for February 26-27.