New Delhi: Ending the deadlock at World Trade Organisation (WTO), India and the United States on Thursday reached an agreement under which the subsidy given by the government to farmers through minimum support price (MSP) will not be challenged even if it breached the set limits.
It is a major victory for the Narendra Modi government in the international economic diplomacy arena, where India had shown toughness to protect the interests of its farmers by vetoing the Trade Facilitation Agreement (TFA).
The agreement betw-een India and the US now paves the way for the implementation of TFA which seeks to ease custom rules and could add $1 trillion to the world economy.
In July, India had not allowed an agreement on TFA. India wanted that along side TFA, the issue of MSP to farmers too be resolved.
Both countries have reached an understanding on implementation of a December 2013 WTO decision regarding specific food security programs maintained by some developing countries, said a statement by the US government.
