Washington: Republican lawmakers of America have opposed the subsidy given by the government to farmers in India. He has written a letter to President Joe Biden, saying that due to the agricultural subsidies given by India, global business is being affected and America’s farmers are suffering. According to Hindustan Times, these MPs have asked Biden to raise the issue against India with the World Trade Organization (WTO). Although experts believe that elections to the House of Representatives are to be held soon in America, in view of that, these MPs are trying to woo the farmers here. India has been questioning the WTO’s rule of comparison of subsidies and has been accusing the US of the contrary.
According to the HT report, 12 Republican lawmakers in the US Congress have alleged in a letter to Biden that India does not follow WTO rules on agricultural subsidies. These rules say that no more than 10 percent subsidy can be given on a particular product or products to be exported. But India gives more than 50 percent subsidy on things like wheat and rice. In such a situation, this issue should be raised in the WTO. Out of the 12 MPs who wrote these letters, 10 are those who represent areas where agriculture is very high. The other two lawmakers are considered supporters of California’s farmer’s lobby.
Indeed, India’s agricultural subsidies have long been a matter of dispute in trade with the US. India says that from a per capita perspective, America supports its farmers more than India. According to HT, Bishwajit Dhar, professor and trade affairs expert at JNU, says that the US administration alleges discrimination by calculating Indian subsidies under the rules of the WTO’s Agreement on Agriculture. The fact is that under these rules, the prices announced by the government at present are compared with the international prices of agricultural products of 1986-88. Taking three-decades-old prices as standard is in itself a very wrong approach. He said that India has been consistently raising the point in the WTO that this method should be changed and should be decided according to the current context.
Another reason behind this letter from Republican MPs is being seen by the experts. He says that this protest of MPs is the result of America’s domestic politics. Elections to the House of Representatives are approaching in America. In such a situation, MPs are putting pressure on the Biden administration to get the support of their farmer voters. In January this year too, 28 lawmakers wrote to US Trade Representative Catherine Tye, making similar allegations against India and China. After this, Indian diplomats contacted these MPs and explained their side. Experts believe that this is the result of the same that this time instead of 28, only 12 MPs have written a letter in protest.
