India firm on food subsidies at WTO, trade deal at risk

TNN

New Delhi, Jul 26, 2014 : The government on Friday refused to yield to pressure from developed countries to accept easier customs rules without its food subsidy concerns being addressed, putting at risk a likely deal at the World Trade Organization (WTO).

Developed countries have stepped up the pressure on India saying failure to strike a deal on trade facilitation would stall global trade reforms and deal a massive blow to the WTO by undoing the work done by trade ministers at Bali.

 

"To jeopardise the food security of millions at the altar of a mere anomaly in the rules is unacceptable... In order to fully understand and address the concerns of members on TFA (trade facilitation agreement), my delegation is of the view that the adoption of the TF protocol be postponed till a permanent solution on public stock holding for food security is found," Anjali Prasad, India’s ambassador to the WTO, said at a specially convened meeting to clear the trade facilitation agreement, which promises to ease clearances at ports and airports across the 160 member countries.

 

Reports said US ambassador Michael Punke warned that efforts by some countries to derail the talks could undermine global trade reform.

 

"Today, we are extremely discouraged that a small handful of members in this organisation are ready to walk away from their commitments at Bali, to kill the Bali agreement, to kill the power of that good faith and goodwill we all shared, to flip the lights in this building back to dark," Punke was quoted as saying.