New Delhi: In the first major reform adopted in the history of World Trade Organis-ation (WTO), its 160 members on Thursday agreed to implement a landmark global trade agreement Trade Facilitation Agreement (TFA).This agreement comes after the resolution of India concerns on food security. Two weeks back ending deadlock at WTO, India and US had reached an agreement under which subsidy given by the Indian government to its farmers through minimum support price (MSP) will not be challenged even if it breached the set limits.
TFA seeks to ease custom rules and could add $1 trillion to the world economy.“We’ve made it!”, WTO director-general Roberto Azevedo said in a speech to member states, according to agency reports coming from Geneva.The member states had adopted two texts presented on Monday: the Trade Facilitation Agreement, aimed at streamlining global customs procedures, and one on the management of food stockpiles. These two texts were agreed upon late last year in Bali, but had been stalled since July, when India refused to endorse the pact unless its food stockpiles were exempted from possible punitive measures.
“We have put ourselves back in the game. We’ve seen a renewed commitment to the multilateral system,” said WTO DG.India wanted that along side TFA, the issue of MSP to farmers too be resolved.India and US had agreed that “a mechanism under which WTO members will not challenge such food security programmes under WTO dispute settlement procedures will remain in place until a permanent solution regarding this issue has been agreed and adopted.”
The historic agreement would now need to be ratified by governments of individual member countries, including India, for coming into effect which is expected some time next year.Commerce minister Nirmala Sitharaman is expected to give a statement on the development on Friday in the Parliament.As per WTO norms, a developing nation can provide food subsidy of up to 10 per cent of the total farm output. However, under a peace clause, no member country till 2017 could have challenged other country, even if it breached this 10 pert cent limit. India wanted a guarantee the interim agreement would continue.
“Once in force, it will help developing countries better integrate into the global economy, intensify regional integration and lift millions out of poverty,” EU Trade Commissioner Cecilia Malmstroem said.
