US Senators: Oppose India’s Wheat Subsidies
<p>India has made its market more accessible to the American agricultural sector across 12 different product lines, according to a senior Biden administration trade representative who addressed legislators on Wednesday. Influential senators raised concerns regarding India’s subsidies on wheat and rice, as well as alleged exploitation in the country’s shrimp industry. US Trade Representative (USTR) […]</p>
US Senators: Oppose India’s Wheat Subsidies
India has made its market more accessible to the American agricultural sector across 12 different product lines, according to a senior Biden administration trade representative who addressed legislators on Wednesday. Influential senators raised concerns regarding India’s subsidies on wheat and rice, as well as alleged exploitation in the country’s shrimp industry.
US Trade Representative (USTR) Katherine Tie, in response to a series of inquiries during a congressional hearing held by the US Finance Committee, defended the Biden administration’s stance. Tie emphasized efforts to expand opportunities for American agricultural communities, particularly in rural areas. Negotiations have led to over $21 billion in new agricultural market access in the last three years, she stated.
In specific terms, India removed retaliatory tariffs on various US goods after settling seven World Trade Organization disputes. This enhances the access for chickpeas, lentils, almonds, walnuts, and apples, offering advantages to farmers across states like Michigan, Oregon, California, and Washington, Tie elaborated.
Tie further explained the benefit of market access for turkey, duck, blueberries, and cranberries, assisting farmers in states such as North Carolina, Pennsylvania, Virginia, Massachusetts, and Minnesota. She stressed the significance of ensuring trade supports all Americans and highlighted the importance of incorporating diverse perspectives in trade policy.
Tie emphasized the administration’s ongoing focus on upholding trade regulations to level the playing field for American industries and workers. They aim to enforce trade agreements, protect American jobs, and extend the benefits of trade to a wider audience.
Senator Ron Wyden, head of the Senate Finance Committee, accused India of skewing wheat prices with subsidies, which harms American farmers. He criticized foreign nations’ unfair practices, including Mexico’s illegal fishing and China’s long-standing record of trade malpractices.
Wyden called for stronger actions from USTR, including initiating disputes and opening investigations into unfair trade practices. These measures, he argued, are essential for holding trade violators accountable and ensuring a fair competitive landscape.
Senator Steve Daines pointed out the US’s leading position in lentil production, noting that access to India’s market is crucial for its farmers. Ranking member Mike Crapo from Idaho criticized USTR for not taking any enforcement measures against China’s unfair trade practices.
Tie underscored recent gains in market access, citing the renewal of the safeguard agreement with Japan, which has facilitated greater access for US beef. The expansion to 12 tariff categories with India represents growing opportunities for American exporters, she mentioned.
In response to a query from Senator Bill Cassidy regarding a whistleblower’s claims about forced labor in India’s shrimp sector, Tie affirmed the matter had been discussed with her Indian counterpart. She stated the administration remains committed to addressing the issue.
Cassidy also highlighted concerns from the US rice industry, asserting that without India’s rice subsidies, American exporters would gain an additional $850 million in revenue.
