India, Brazil begin talks to resolve sugar-related trade dispute at WTO

India and Brazil have started talks to resolve a sugar-related trade dispute at the WTO. Brazil may share ethanol production tech with India, which could help reduce its reliance on oil imports and cut carbon emissions. India is offering something in return, and the US has already ended six trade disputes with New Delhi. India is the world's second-largest sugar producer and has exported 110 lakh tonnes of sugar in 2021-22, earning ₹40,000 crore. India is aiming for 20% ethanol-blended petrol by 2025 and needs 1,016 crore litres of ethanol for this. WTO members can resolve disputes outside the dispute settlement mechanism.

India and Brazil have started talks to mutually resolve a sugar-related trade dispute at the World Trade Organisation (WTO) and as part of the solution the South American nation may share ethanol production technology with New Delhi, an official said.

Brazil is the largest producer of sugarcane and ethanol in the world. It is also a leader in the technology used for 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.

Ethanol is used to blend with oil to power vehicles. The use of ethanol, extracted from sugarcane as well as broken rice and other agri produce, will help the world's third-largest oil consumer and importing country cut its reliance on overseas shipments. India currently is 85% dependent on imports for meeting its oil needs. Also, it cuts carbon emissions. There is a target of 20% ethanol blended petrol by 2025.

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India would also have to offer something as part of the mutually agreed solution (MAS) to resolve the dispute at the Geneva-based multi-lateral body.

Recently India and the US have ended six trade disputes and have also agreed to terminate the seventh case. As part of the solution, while New Delhi removed retaliatory duties on 8 American products like apples and walnuts, the US is providing market access to Indian steel and aluminium products without levying extra duties.