India clears way for WTO deal, resolves food security concerns with US - Livemint

The proposals will be reviewed by WTO’s general council, Nirmala Sitharaman said, expressing the hope that approval would clear the way for India to sign a protocol enabling implementation of the trade accord. Photo: PTI

New Delhi: India and the US have resolved differences over public stockholding for food security purposes, a move that could lead to the passage of the trade facilitation deal at the World Trade Organization (WTO).

“This will end the impasse at the WTO and also open the way for implementation of the trade facilitation agreement,” trade minister Nirmala Sitharaman said in a statement.

The proposals will be reviewed by WTO’s general council, she said, expressing the hope that approval would clear the way for India to sign a protocol enabling implementation of the trade accord.

India will give its support to the trade facilitation agreement once its food security concerns are satisfactorily addressed. India had earlier refused to sign the agreement till its concerns over the agreement were addressed, a decision that had seen India being criticized by developed countries for stalling the WTO deal.

Developing countries were opposing a rule that caps subsidies to farmers at 10% of the total value of agricultural production, based on 1986-88 prices. They had pointed out that the base year was now outdated and they need to be given leeway to stock enough foodgrains for food security of millions of their poor.

India is asking for a peace clause on food subsidies to continue till a permanent settlement on the issue is found. A so-called peace clause gives legal security to member-countries and protects them from being challenged under other WTO agreements.