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In its final decision at the World Trade Organization's (WTO) General Council meeting in Geneva, India has stated that a deal on trade facilitation cannot be agreed upon without any progress on food security.
In a bold statement made at the WTO General Council, the organisation's highest decision-making body, India has said the series of developments that have taken place after the Bali ministerial meeting in December 2013 have "belied" expectations of developing countries.
"In order to fully understand and address the concerns of members on the trade facilitation agreement (TFA), my delegation is of the view that the adoption of the TF protocol be postponed till a permanent solution on public stockholding for food security is found," stated India's ambassador to the WTO Anjali Prasad even as she reiterated the government's commitment to the Bali package.
However, India has also categorically stated that the WTO must establish "immediately" an institutional mechanism such as a dedicated special session of the committee on agriculture to find a permanent solution on public stockholding for food security, which can be arrived at by December 31 this year.
Stressing the need to adhere to the concept of a 'single undertaking', India urged that all issues, including the TFA, be signed together. In doing so, India has stated that the progress of talks on food security be reviewed at WTO's next General Council meeting scheduled for October 2014.
Under the concept of a 'single undertaking', a trade agreement is considered valid only when negotiating countries agree to all areas of the pact.
"The Bali ministerial (December 2013) discussed and agreed to an entire package. So, why should we agree to sign only one part out of the nine others, which have all been bundled together for some other time? Once the TFA is signed, it will be legally binding on us. All the rest of the issues will get mired and blurred. Why this sort of cherry-picking? We are only reminding others of the basic principle of the Doha Development Round (DDR)," a top official involved in finalising India's strategy at the WTO told Business Standard.
It appears, though, that India got cornered with such a suggestion, with only Cuba and Venezuela supporting its move.
The government is not opposed to the Bali package itself. But it wants all member-countries to adhere to the main agreement under the DDR, which was to establish a global trade deal under a single undertaking.
"All we are asking is that the public stockholding issue as well as other decisions of Bali be taken forward in the same timeframe as trade facilitation. India is of the view that the TFA must be implemented only as part of a single undertaking including the permanent solution on food security," India stated at the WTO.
India has stated that it has been forced to take such a stand so that millions of farmers and poor families who depend on domestic food stocks do not have to live in constant fear of the consequences of what takes place at the WTO.
"To jeopardise the food security of millions at the altar of a mere anomaly in the rules is unacceptable." The official said India was apprehensive of repeating the mistakes of the Uruguay round.
The Uruguay round, which preceded the DDR, was signed in 1994 and paved the way for creation of the WTO. The round was heavily tilted towards developed nations, as it granted them leeway to offer subsidies for farmers, while the needs of developing countries were not attended to.
"Today a small number of WTO members are indicating they may no longer stand by their commitments to implement the TFA. Or that they will honour their commitments only if they can now renegotiate the terms and receive new trade-offs - additional to the ones they negotiated in Bali. It is profoundly disappointing that we have arrived at this moment," said US Ambassador to the WTO and Deputy Trade Representative Michael Punke.
China, Brazil and South Africa stressed early implementation of the TFA. So, India seems to have lost the support of BRICS nations as well. The situation was similar with the 10-member Association of Southeast Asian Nations which also support the TFA.
BARGAINING AT GENEVA
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India puts forward its final stand on WTO's trade facilitation agreement
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Wants Bali package to be discussed as a 'single undertaking'
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Under the concept of a 'single undertaking', a trade agreement is considered valid only when negotiating countries agree to all areas of the pact
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India has said that it is not opposed to the trade facilitation agreement in itself
