Brazil has proactively offered to impart its sophisticated ethanol production technology to India, marking a strategic attempt to defuse a persistent sugar-related conflict at the World Trade Organisation (WTO). This inventive proposal (Ethanol Tech) aims to enable India to transform surplus sugar into ethanol, a maneuver that could recalibrate competition in the volatile international sugar market, where Brazil holds a commanding presence as the predominant exporter.
This proposed technological collaboration aligns with India’s aspirations to augment ethanol blending in petroleum auto fuels, facilitating a reduction of dependency on imported crude oil. Brazil’s advanced flex technology presents a robust solution, positioning India to optimize its surplus sugar for ethanol production, contributing to global market stability and enhancing fuel security.
The offer fosters an environment conducive to mutual benefit and strategic cooperation. Brazil’s expertise in ethanol production stands as a testament to its leadership in the global arena, boasting a remarkable accomplishment of a 25% blending level in gasoline. The synergy between Brazil’s technological prowess and India’s production capacity signifies a transformative potential in the global fuel and sugar markets.
The backdrop of this proposal is painted with challenging WTO disputes. India had previously faced criticism and legal challenges from Brazil, Australia, and Guatemala, regarding its sugarcane farmers’ support mechanisms. A ruling in December 2021 by a WTO panel deemed India’s measures inconsistent with established global trade practices, necessitating a shift in strategy and approach.
Brazil’s technological outreach is envisioned as a cornerstone for bolstering bilateral relations, already witnessing a surge in trade volumes to $16.6 billion in 2022-23, marking a notable increase from $12.2 billion in the preceding fiscal period.
Navigating the landscape of global trade disputes, the technology-sharing proposition emerges as a significant milestone. It champions the ethos of collaboration, leveraging technological innovation as a conduit for resolving disputes, and orchestrating a harmonized trajectory for sustainable and equitable growth in the global sugar and ethanol sectors.
IMEX SECTOR | India, Brazil in Talks to Resolve WTO Sugar Dispute, Share Ethanol Tech
