| 'Sugar transport subsidies are WTO compatible' |
| BS Reporter / New Delhi November 26, 2007 |
| India has said that subsidies on transport of sugar, given to exporters of the commodity, are compatible with norms laid down by World Trade Organisation (WTO). "The transport subsidies given by India to its sugar producers is compliant with World Trade Organisation norms. I will write to trade ministers of Thailand and Australia, explaining them the issue," said Commerce Minister Kamal Nath today, on the sidelines of a bilateral trade meeting with the Netherlands. Australia and Thailand had approached the World Trade Organisation, objecting to the subsidies given by India. The government has been subsidising the transport costs for sugar exporters since April this year. While sugar exporters in coastal states get a maximum subsidy of Rs 1,350 per tonne, those based in other states get compensated at the rate of Rs 1,450 per tonne. Nath also said India and the European Union will begin the fourth round of talks on the proposed free trade agreement in December, this year. "The discussions got a delayed by around eight months as all the members of the European Commission had to ratify the process," Nath added. Earlier, speaking at a CII conference on doing business with Malaysia, Nath said that India will start negotiations with the Southeast Asian nation in January 2008. This follows a report by a joint study group, comprising officials and experts from both the countries. The report said that bilateral trade could reach the mark of $16 billion by 2012 from the current level of $6.6 billion in 2006-07. "Currently, India accounts for 2.2% of Malaysia |
