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India not responsible for WTO talks failure: Officials

The message from the WTO is clear: there is still some possibility left for the deals on food security and trade facilitation. The WTO told CNBC-TV18, “The talks have not failed. We are in crisis, to be sure, but there remains a chance that this could still come together.”

November 29, 2013 / 11:44 IST
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Official talks at the World Trade Organisation (WTO) on global deals related to food security and trade facilitation ended on Tuesday without the texts of the proposed agreements being finalised. The blame is slowly being directed towards India.

Also read: India Inc backs Govt stance on food subsidy at WTO
Amidst the reports of the proposed measures being buried, the WTO told CNBC-TV18 that the negotiations have not failed.
The message from the WTO is clear: there is still some possibility left for the deals on food security and trade facilitation. The WTO told CNBC-TV18, “The talks have not failed. We are in crisis, to be sure, but there remains a chance that this could still come together.”
This clarification was given amidst reports of the negotiations having failed and that India was to blame. Indian trade diplomats maintain that even in the past, unsuccessful attempts have been made to blame India for the failure of WTO talks. They point out that of the 75 odd unresolved issues in the trade facilitation text, only five pertain to India.
Infact, Indian trade diplomats support the trade facilitation text as it would jumpstart infrastructure development in ports, and speed up customs procedures. The trade facilitation text binds countries to release import and export consignments expeditiously.
On the crucial food procurement and security pact, the WTO proposed a peace clause, through which countries like India will not be challenged for overshooting food subsidy caps mandated by present trade norms.
India has agreed to the four year relaxation period, but has warned that if a permanent solution on food subsidy caps is not found by 2018, then the peace clause would have to be extended.
Moreover, India is concerned that it may be made party to an international trade dispute during the peace clause period if a WTO member views the food subsidy as distorting international trade.
While the peace clause is essential for the smooth roll-out of the food security act, a failure to reach a global deal could be more counterproductive as there won't be any line of defence at the WTO to protect the subsidy and minimum support price regime from trade disputes.
The union cabinet has formalised the stance that India will take and the action now shifts to the WTO ministerial at Bali between December 3 and December 6
first published: Nov 28, 2013 09:42 pm

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