Modi goverment reaffirmes its commitment but complains that global body has not found permanent solution
Picture for representational purpose
Hyderabad : Strange it may sound, but a trade deal that was supposed to boost the global economy by $1 trillion was stalled because of WTO members’ reluctance to agree to add a comma in a peace clause on food procurement as requested by India in the 65-page draft agreement. The Narendra Modi government, though reaffirmed its committment to the trade deal, complained that the global body did not show interest in finding a permanent solution to a 10 per cent cap on food stockholding, which is vital for the country to feed its poor.
The government argued that the language in the draft is vague as it does not say that exemption given to India from stockholding norms would continue beyond 2017 when the four-year window to find a permanent solution to India’s concerns ends.India contended that developed countries may not show interest in addressing the food issue and insisted that a solution for the food issue be found along with the trade deal.
According to Bloomberg, Indian officials have said that “India wanted a comma replaced with "or" in a section dealing with food stockholdings, as well as a guarantee the interim agreement would continue.”Some members, however, were reluctant to reopen negotiations, which forced India to block the clearance of deal agreed by 160 countries at Indonesian island of Bali in December 2013.
While some analysts feel that India is not going to gain anything by this move, others feel that the government’s stand is dictated by domestic politics as Prime Minister Narendra Modi wants to champion the cause of the poor and farmers together constitute numerically very important block in the world’s largest democracy.Upset by the developments, some countries have already called for a new deal, if required without India’s participation.
If the WTO talks are not revived, developed economies may be forced to negotiate trade deal among smaller like-minded groups, virtually writing off the importance of teh global trade body.
( Source : dc correspondent with agency inputs )
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