India-US Resolve Differences, End Impasse At WTO

The standoff between India and the US regarding the former’s stand at the World Trade Organisation (WTO) is finally over. Commerce and Industry Minister Nirmala Sitharaman made the announcement via Twitter that India and the US have resolved their differences over public stockholding for food security.

“Glad to announce that India and the US have resolved differences on issue of public stockholding for food security (sic),” tweeted the minister.

The commerce minister has said, “We are confident that the membership will take the matter forward in the WTO in a constructive spirit. This would be an important contribution by the WTO reflecting its commitment to development.”

“We urge the WTO membership to take this forward in the General Council on behalf of the Ministerial Conference and pave the way to spurring the WTO to more such successes,” she further added.

The commerce minister had earlier said that India had always supported the Bali agreement. However, subsequent developments in the agreement did not suit India’s interest, “…but when subsequent developments belied that hope, India had no option but to seek a course correction.”

“India, therefore, took the stand that till there was an assurance of our concerns being addressed, it would be difficult to join the consensus on the Protocol of Amendment for the Trade Facilitation Agreement,” said the minister.

The minister stated that “While the relevant the WTO rules recognize food security concerns, their primary focus is to liberalise agricultural trade rather than to ensure food security. However, the fact is that some of these rules are proving to be a hindrance to food security efforts”.

It should be noted that there was an impasse regarding TFA following India’s stand at the WTO, upsetting the developed countries. However, several developing countries had also supported India’s stand at the WTO.