- India has been starkly criticized for its stance on the WTO’s Trade Facilitation Agreement (TFA) and accused of sabotaging the 1st real agreement prepared by WTO.
- TFA, which is aimed at easing custom rules and simplifiying procedures, was formed in the 9th Ministerial Council at Bali after the developing world reached a consensus on finding a permanent solution to the issue of stockpiling of grains by the developing countries by 2017.
- The Bali Declaration also provided for a “peace clause” that allowed India to continue with its food subsidy until then.
- India has however questioned the limit of trade distorting subsidy which is 10% of the value of food grains output in a year with the base year of prices set at 1986-88.
- India believes that this limit does not consider inflation and currency depreciation, and wants the base year to be set to a later period.
- The Food Security Act, when passed will increase the subsidy in the coming years and India cannot therefore be limited by flaws in calculations.
- Even the govt is unwilling to compromise the interests of the 270 million people that live below poverty line and its farmers.
- India has been continuously pushing for renewed talks on public stockholding of grains, but with no result. However, once signed, negotiation will come to an end.
- In this context, extending the deadline by another six months is a viable option.
- Read at: http://www.thehindu.com/todays-paper/tp-opinion/facilitation-and-food/article6278548.ece