AGRICULTURE
Pledging draws scrutiny
WTO questions if scheme breaks a rule
- Published: 1 Oct 2012 at 00.00
- Newspaper section: Business
With the simmering debate over the government's costly rice pledging scheme going on at home, the programme is now drawing interest from global markets with regard to a possible breach of World Trade Organisation (WTO) regulations.
"Thailand's paddy pledging scheme, which combines loans with price guarantees, was the subject of questions at the last meeting of the WTO's Agriculture Committee on Sept 20 about a possible breach of domestic support limits, and the effect on international markets," said a Geneva-based WTO official who asked not to be named. "At this meeting, Australia, the US, the Philippines and Pakistan asked questions or said they were interested in the issue."
The official declined to comment on whether Thailand's practices violate WTO rules.
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