India and the US have resolved their differences over public stockholding for food security , paving the way for the revival of stalled global trade talks and implementation of the pact on trade facilitation for easier customs rules. “We are extremely happy India and the US have resolved their differences relating to the issue of public stockholding for food security purposes in a manner that addresses our concerns,“ commerce and industry minister Nirmala Sitharaman said. Details of the deal were not disclosed.
The bilateral agreement makes clear that a mechanism under which WTO members will not challenge such food security programmes under WTO dispute settlement procedures will remain in place until a permanent solution for the issue is agreed upon and adopted, a statement from the US trade representative said. Earlier, the “peace clause“, which would have prevented action, was to be in place for four years. The Indo-US WTO pact on food security will come as a major boost for the Narendra Modi government as the Bali agreement was one of the first issues redflagged by it after assuming charge. The stand had come in for severe criticism from across the world and even within the country , but the US deal reinforces Modi's image as a man who stays firm. The agreement comes ahead of the G20 meeting in Brisbane where the PM will meet US President Barack Obama and other global leaders.
With the deal done, the world's 20 largest economies are expected to signal their commitment to free and fair global trade talks. Next week, a WTO team is scheduled to visit India to assess its trade policies.
Thursday's deal gives India the flexibility to provide minimum support price and procure as much grain as it wants for its security programme without being challenged by other WTO members at the global trade body .India has remained firm on its demand for a permanent solution to its concerns on subsidy paid during procurement of farm products. It had called for reworking the formula for calculating the subsidy ceiling, saying it was based on old prices.
There were signals in recent days that New Delhi was willing to agree to a formulation that there will be no punitive action even in case of a breach of the 10% subsidy cap.
Global trade talks have been deadlocked after India refused to agree to a trade facilitation agreement to usher in easier rules for goods to flow through ports and airports without its concerns on food security being addressed.
The revival of global trade talks and implementation of the trade facilitation agreement augurs well for the global economy and, according to estimates, has the potential to add $1 trillion to the sluggish world economy and create jobs. Sources said India and the US would “shepherd” the proposal at WTO’s general council which is scheduled to meet on December 11.
US trade representative Michael Froman welcomed the agreement.
World Trade Organization (WTO) director-general (DG) Roberto Azevedo welcomed the news that the US and India have agreed on the way forward for implementing key elements of the package of agreements reached last December at the WTO ministerial conference in Bali. The European Union termed the India-US deal as an important breakthrough.
The bilateral agreement makes clear that a mechanism under which WTO members will not challenge such food security programmes under WTO dispute settlement procedures will remain in place until a permanent solution for the issue is agreed upon and adopted, a statement from the US trade representative said. Earlier, the “peace clause“, which would have prevented action, was to be in place for four years. The Indo-US WTO pact on food security will come as a major boost for the Narendra Modi government as the Bali agreement was one of the first issues redflagged by it after assuming charge. The stand had come in for severe criticism from across the world and even within the country , but the US deal reinforces Modi's image as a man who stays firm. The agreement comes ahead of the G20 meeting in Brisbane where the PM will meet US President Barack Obama and other global leaders.
With the deal done, the world's 20 largest economies are expected to signal their commitment to free and fair global trade talks. Next week, a WTO team is scheduled to visit India to assess its trade policies.
Thursday's deal gives India the flexibility to provide minimum support price and procure as much grain as it wants for its security programme without being challenged by other WTO members at the global trade body .India has remained firm on its demand for a permanent solution to its concerns on subsidy paid during procurement of farm products. It had called for reworking the formula for calculating the subsidy ceiling, saying it was based on old prices.
There were signals in recent days that New Delhi was willing to agree to a formulation that there will be no punitive action even in case of a breach of the 10% subsidy cap.
Global trade talks have been deadlocked after India refused to agree to a trade facilitation agreement to usher in easier rules for goods to flow through ports and airports without its concerns on food security being addressed.
The revival of global trade talks and implementation of the trade facilitation agreement augurs well for the global economy and, according to estimates, has the potential to add $1 trillion to the sluggish world economy and create jobs. Sources said India and the US would “shepherd” the proposal at WTO’s general council which is scheduled to meet on December 11.
US trade representative Michael Froman welcomed the agreement.
World Trade Organization (WTO) director-general (DG) Roberto Azevedo welcomed the news that the US and India have agreed on the way forward for implementing key elements of the package of agreements reached last December at the WTO ministerial conference in Bali. The European Union termed the India-US deal as an important breakthrough.
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