India and Brazil to seek WTO resolution

India and Brazil are in ongoing talks at the World Trade Organisation (WTO) to find a solution to their sugar trade dispute.


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India and Brazil are currently engaged in discussions aimed at resolving a trade dispute regarding sugar at the World Trade Organisation (WTO), and as part of the solution the South American nation may share ethanol production technology with New Delhi.

Brazil stands as the world’s foremost producer of sugarcane and ethanol, and it occupies a prominent position in the technological advancements associated with ethanol production.

“Few rounds of talks have been held as part of our efforts to resolve the dispute. We have also held inter-ministerial meetings here. Brazil is saying that they will share with us technology for ethanol (production). It is a positive thing,” the official said.

India, the world’s third-largest oil consumer and importer, aims to diminish its 85% dependence on overseas oil shipments. Ethanol, derived from sources like sugarcane and broken rice, is integral to this effort. Not only does ethanol cut carbon emissions, but it’s also pivotal in achieving the target of 20% ethanol-blended petrol by 2025, offering a more sustainable fuel alternative.

In order to reach a mutually acceptable solution (MAS) for the dispute at the Geneva-based multilateral body, India would need to make reciprocal concessions. This approach mirrors India’s recent resolution of six trade disputes with the United States, where both parties have reached agreements. In this context, India eliminated retaliatory tariffs on eight American goods, including items like apples and walnuts. Simultaneously, the US has granted Indian steel and aluminium products access to its market without imposing additional tariffs.

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