BackCabinet to take call on India’s stand on WTO Bali pact
The Cabinet meeting on Wednesday comes before the 31 July deadline for ratification on protocol of trade facilitation agreement
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New Delhi: Amid sharpening differences between India and developed world on World Trade Organization (WTO) issues, Union Cabinet headed by Prime Minister Narendra Modi will finalise this week New Delhi’s stand on Bali agreements including ratification of the trade facilitation pact.
The Cabinet meeting on Wednesday comes close to the 31 July deadline for ratification on protocol of trade facilitation agreement (TFA). India has vehemently opposed the process of implementation of the WTO’s Bali agreements which include TFA, permanent solution on India’s public stock holding of foodgrains for its food security programme and issues pertaining to least developed countries (LDCs).
The final protocol for TFA, which is dear to the developed world including US and Australia, was concluded by the WTO members but “no single meeting" has happened on India’s food security related issues, a senior commerce ministry official said.
“India do not trust the intentions of the developed countries. There are examples in the history for not trusting them. India’s stand will now be decided by the cabinet. The Prime Minister will have to sit with the Cabinet and decide. we want single undertaking," the official said.
The official added that the Cabinet would take a call whether to ratify the trade facilitation pact or not. The pact will be formally implemented in 2015. The Cabinet meeting also assumes significance on the backdrop of WTO’s two-day general council meeting starting on Thursday which will discuss the Bali issues. The official said India insists on implementing TFA only as a part of a single undertaking that includes a permanent solution on food security.
The current WTO norms limits the value of food subsidies at 10% of the total value of food grain production. However, the support is calculated at the prices that are over two decades old and not at the current prices.
In the recently concluded G20 trade ministers meeting in Sydney, commerce and industry minister Nirmala Sitharaman has raised India’s concerns over the slow progress in finding a permanent solution for its food subsidies.
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