CANBERRA: Australia has launched World Trade Organization (WTO) action against India over sugar subsidies.

Simon Birmingham, Australia’s minister for trade, announced on Wednesday evening the government has decided to escalate the dispute with Brazil joining Australia.

The two countries claimed that subsidies paid to Indian sugar farmers by the nation’s government has led to an abundant global supply of sugar and significantly lower prices, disadvantaging their own farmers.

“That’s hurting canegrowers and sugar millers whether they’re in Australia, Brazil, or any other country in the world,” he told reporters.

Birmingham said that Australia has voiced its concerns to India to no avail, leaving the government with “no other choice but to initiate formal WTO dispute action, together with Brazil.”

“Last year, we saw around 1 billion Australian dollars of additional new subsidies to Indian sugar farmers,” he said.

As a result the global sugar price hit a 10-year low, crippling sugar farmers in northern Australia who have also had to combat drought and floods.

According to the Australian Sugar Mining Council, the subsidies could amount to 360 million AUD in losses for Australian farmers over the 2017-2018 and 2018-2019 financial years.

“These WTO inconsistent practices are really hurting our farmers and those elsewhere around the world, and that is why we are going down this path,” Birmingham said.

It comes at a time when Australia is trying to increase the amount of trade it does with India, having identified the country as a major growth market.

The two countries signed a Comprehensive Economic Cooperation Agreement in December 2018 after seven years of negotiations and have agreed to ramp up trade.

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