India has second time invoked the peace clause at the World Trade Organization (WTO) for exceeding the 10 per cent ceiling on support it offered its rice farmers.
- India informed the WTO that the value of its rice production in 2019-20 was $46.07 billion while it gave subsidies worth $6.31 billion, or 13.7 per cent as against the ceiling of 10 per cent.
- The peace clause protects India’s food procurement programmes against action from WTO members in case the subsidy ceilings are breached.
- India had additionally invoked the peace clause for 2018-19, which had made India the first country to exercise its peace clause rights. Some WTO members had challenged the increase in subsidies beyond ceiling limits in the marketing year 2018-19.
- Article 13 (“due restraint”) of the Agriculture Agreement of WTO protects countries using subsidies which comply with the agreement from being challenged under other WTO agreements.
