Geneva: The WTO approved a trade facilitation pact agreeing to India’s demand for continuing the peace clause till a permanent solution is found to the food stockpiling issue, crucial for continuing food security scheme.
The WTO’s General Council, the highest decision making body met in Geneva and accepted India’s demand for extending the peace clause till a permanent solution is found for its food stockpiling issue.
It is the first worldwide trade reform in its history, after years of stalemate, months of deadlock and a final day’s delay following an eleventh-hour objection.
The agreement means the WTO will introduce new standards for customs checks and border procedures. Proponents say streamlining the flow of trade will add as much as $1 trillion and 21 million jobs to the world economy.
Ending months-long deadlock, the announcement on thursday said members would not challenge the decision through the WTO Dispute Settlement Mechanism.
It said that if a permanent solution for the issue of public stock-holding is not agreed and adopted by the 11th Ministerial Conference (2017), “the mechanism…shall continue to be in place until a permanent solution is agreed and adopted”.
The historic trade facilitation agreement (TFA) would now need to be ratified by governments of individual member countries, including India, for coming into effect which is expected sometime next year.
On TFA, it said that the pact for easing customs norm was adopted by WTO members for acceptance.
On the positive development in Geneva, WTO Director General Roberto Azevedo said this is a very important moment for the multi-lateral trade body.
“By agreeing these three decisions we have put ourselves back in the game. We have put our negotiating work back on track – that means all the Bali decisions: trade facilitation, public stock-holding, the LDC (least developed countries) issues, the decisions on agriculture, development, and all of the other elements,” he said.
Today’s decision is crucial for India to meet over Rs 1 lakh crore a year food security programme, which needs 62 million tonnes of food grain in a year.
This will enable India to continue procurement and stocking of food grain for distribution to poor under its food security programme without attracting any kind of action from WTO members.
(With inputs from PTI)