It is now feared that the prospects for a deal at the WTO seems to be “grim“, as India has dug in its heels over the issue of food security , putting at risk the fate of the negotiations which have lingered on for over a decade.
India blocked an agreement on new global customs rules as Indian officials have conceded that it was unlikely for the membership to work out the deals of the food security package, which the government wants should result in calculation of subsidies at current market prices instead of 1986-88 prices to avoid a situation where several countries breach the 10% ceiling.
Only as a result, India is demanding that the trade facilitation deadline be postponed, something that the other countries are currently unwilling to offer.on Thursday, angering fellow members of the World Trade Organisation who say Delhi's veto could be costly, economically and politically.
Several countries issued statements saying that a failure to agree the deal would be a massive blow to the WTO, and many have called India's intransigent approach to World Trade Organisation negotiations as unjustified. It is argued that by holding the deal that is estimated to be worth $1 trillion a year and generate 21 million jobs around the world . Even the TFA is also in India's interest as it eliminates red tape in Trade and India is assured of a four-year window to settle the food issue.
Though WTO rules do not prevent a government from subsidising its population. But India's implicit subsidy for wheat and rice production in particular, through a mechanism of mini mum support price falls squarely within WTO's definition of "Trade distortion", and that worries India. And here is the point of India's complaints that WTO does not show the same sense of urgency in solving the food stockpile issue as it does in pushing through TFA.
INDIA HONEST concludes that the centre point at WTO is now more of a balancing act by the western and developed nations , which are willing to gain both hands by completing the Trade deal on one hand to facilitate the Trade, while securing their hold on agro products trade .
Yes it is true that US and many other nations are concerned about India's growing clout as a wheat exporter, and here an implicit subsidy to boost production is hidden point of contention, as a part of which finds its way into the world market is bound to cause consternation as it hurts wheat farmers elsewhere.
It is time India must secure and safeguard its interest by hard bargain, while remaining positive on world trade facilitation deal, ultimately.