Minister for Trade, Tourism and Investment, Simon Birmingham
Minister for Agriculture and Water Resources, David Littleproud
Assistant Minister for Trade, Tourism and Investment, Mark Coulton
28 February 2019
The Liberal-³Ô¹ÏÍøÕ¾ Government, together with Brazil, has launched formal dispute action in the World Trade Organization (WTO) on India’s continuing sugar subsidies that are depressing world prices and impacting on our highly productive and globally competitive sugar industry.
Minister for Trade, Tourism and Investment Simon Birmingham said India’s sugar subsidy regime was inconsistent with WTO rules and had helped create a glut in the global sugar market.
“The Liberal-³Ô¹ÏÍøÕ¾ Government continues to stand side-by-side with our sugar industry on this matter,” Minister Birmingham said.
“This glut is hurting Australia’s canegrowers and millers, and is threatening our $1.8 billion sugar export industry by dragging down prices to unsustainable lows.
“While Australia respects the rights of WTO members to support their farmers and agricultural industries, this support must be consistent with WTO rules and provide a level playing field.
“Australia always seeks to resolve its concerns outside of the WTO’s dispute system, and our numerous representations to India at the highest levels and in the WTO have been consistent with this approach.
“Unfortunately, our representations, and those of other sugar exporting countries, have so far been unsuccessful. This has left us with no other choice but to initiate formal WTO dispute action, together with Brazil.
“Australia maintains a very good relationship with India, both economically and strategically, and it is perfectly normal for even close friends and partners to avail themselves of WTO mechanisms from time-to-time to resolve trade issues.”
Minister Littleproud and Assistant Minister Coulton joined with Minister Birmingham in acknowledging the work the Canegrowers and the Australian Sugar Milling Council have done in preparing to launch this WTO action.
