 "WTO chief says India should lead talks on food stock solution")
India should assume a leading role in spearheading the talks for having a permanent solution in public stockholding for food security purposes, according to World Trade Organization (WTO) Director-General Roberto Azevêdo.
“The first decision and clearly the most important for India was a clarification of the Bali decision on the public stockholding for food security purposes mainly and unequivocally stating the ‘Peace Clause’ agreed in Bali would remain in place until a permanent solution is found for that issue … I look forward to India playing a leading role in this regard in the coming months,” Azevêdo said here on Friday, while addressing the Confederation of Indian Industry Partnership Summit.
Lauding the efforts of Prime Minister Narendra Modi and Commerce and Industry Minister Nirmala Sitharaman in achieving the breakthrough in November last year that led to the adoption of the Trade Facilitation Agreement (TFA), Azevêdo said it was a significant decision that enabled all 160 members agreed to come together and bring issues back on track.
Azevêdo said the impasse, that was reached in the talks that were agreed in Bali, had a “paralysing effect on negotiations across the board”.
The standoff happened last year in July when India refused to sign the TFA that would have converted it into a legal document. TFA aims at easing global customs norms.
India took a stance that it will not agree to TFA until the ‘Peace Clause’ on food stocks is made permanent until a final solution is arrived at on the issue. Earlier, it was agreed in Bali in December 2013 that the ‘Peace Clause’ or interim measure will be applicable only for four years. However, the impasse was broken when US assured its support on India’s stance at the WTO. Subsequently, all members also agreed. Azevêdo said WTO members are now working towards ratifying TFA according to their own domestic procedures.
“It has the potential to make a big difference, particularly for countries like India,” he added.
“The first decision and clearly the most important for India was a clarification of the Bali decision on the public stockholding for food security purposes mainly and unequivocally stating the ‘Peace Clause’ agreed in Bali would remain in place until a permanent solution is found for that issue … I look forward to India playing a leading role in this regard in the coming months,” Azevêdo said here on Friday, while addressing the Confederation of Indian Industry Partnership Summit.
Lauding the efforts of Prime Minister Narendra Modi and Commerce and Industry Minister Nirmala Sitharaman in achieving the breakthrough in November last year that led to the adoption of the Trade Facilitation Agreement (TFA), Azevêdo said it was a significant decision that enabled all 160 members agreed to come together and bring issues back on track.
Azevêdo said the impasse, that was reached in the talks that were agreed in Bali, had a “paralysing effect on negotiations across the board”.
The standoff happened last year in July when India refused to sign the TFA that would have converted it into a legal document. TFA aims at easing global customs norms.
India took a stance that it will not agree to TFA until the ‘Peace Clause’ on food stocks is made permanent until a final solution is arrived at on the issue. Earlier, it was agreed in Bali in December 2013 that the ‘Peace Clause’ or interim measure will be applicable only for four years. However, the impasse was broken when US assured its support on India’s stance at the WTO. Subsequently, all members also agreed. Azevêdo said WTO members are now working towards ratifying TFA according to their own domestic procedures.
“It has the potential to make a big difference, particularly for countries like India,” he added.
Underscoring the need for members to put their focus back on the Doha Development Agenda, which started in 2001, Azevêdo said that all countries should start negotiations by July. He also highlighted the tough times expected ahead with the onset of negotiations that will culminate at the 10th ministerial conference in Nairobi in December.
On the other hand, minister Sitharaman once again stated that mercantilist policies of certain countries cannot be encourage if the Doha development round has to be completed.
"There is an attempt to link free trade to development. Trade and development are intertwined but I would be hastened to think that only trade is development. Development must remain at the core of the Doha round," Sitharaman added.
She also highlighted that the objective of the Doha round is alleviating poverty, which cannot be done if the agreements are achieved based on countries’ growth rates.