India is saving interests of its farmers and not those of its poor consumers. The casualty is a global trade deal
India has stunned the world by reneging on the commitment it made in Bali just eight months ago. Bali negotiations in November 2013 ended by allowing India to stockpile for the purpose of supplying its public distribution system (PDS) for another four years. The expectation across the world was that since the main stumbling block was removed, 31 July would see the signing of the Trade Facilitation Agreement (TFA). Except for Cuba, Bolivia and Venezuela, India received support from no other country. This is ominous. Though the extent of potential gains from TFA is a matter of some dispute, there is no question that both developed and developing countries wanted to sign it as they saw major gains through it. India too would have gained from the facilitation and expansion of trade. Yet, being able to stockpile foodgrains for a period beyond four years seems so important to this government that it is prepared to invite the wrath of the entire world. We know that the new regime in India is looking for multinational investment and export markets to spur growth. What then explains this quixotic behaviour?
Recommended For You
Select your Category
Internet Not Available
Wait for it…
Log in to our website to save your bookmarks. It'll just take a moment.