us-senate-shows-concern-over-wheat-rice-subsidy-in-india

India has opened up its market to the American farming industry in as many as 12 different categories, a top Biden administration trade official told lawmakers on Wednesday as some influential senators raised the issue of wheat and rice subsidies in India and alleged forced labour in the country’s shrimp industry.

 

US Trade Representative (USTR) Katherine Tie, responding to a series of questions from the senators during a congressional hearing on trade convened by the US Finance Committee, defended the Biden administration’s actions.

 

“We are opening markets for hard-working American families and communities, especially our rural communities. Through negotiations, our administration has secured over USD 21 billion in new agricultural market access in the last three years,” she said.

 

“For example, after the US and India terminated seven WTO disputes, India agreed to remove retaliatory tariffs on several US products. This means improved access for chickpeas, lentils, almonds, walnuts and apples, benefiting farmers across our country, including in Michigan, Oregon, California and Washington,” Tie said.

 

“Trade should work for all Americans. Our goal is to stop pitting Americans against each other in our trade policy and this is why we are taking unprecedented steps to incorporate more voices into trade policymaking,” Tie said.

 

“We will continue to level the playing field for American workers and businesses. We are vigorously enforcing our trade agreements, defending American jobs, and making sure more people enjoy the benefits of trade,” she said.

 

Senator Ron Wyden, Chairman of the Senate Committee on Finance, alleged that India’s wheat subsidies are distorting prices and directly hurting American farmers.

 

“India’s wheat subsidies are distorting prices and making it harder for Oregon’s farmers to compete in the Asian market. Mexico’s illegal fishing practices are hurting the environment and its harmful energy regulations are undermining American clean energy suppliers,” he said.

 

Senator Steve Daines said that the US has been a leading producer of lentils and access to India is very important for its farmers.

Tie said that the Biden administration has secured USD 21 billion in market access over the last three years.

 

Cassidy also raised the issue of rice subsidy by India. “There’s also a concern from our rice people who they say if it were not for Indian subsidies of rice, they would have roughly USD 850 million more in export,” he said.