India ready to back WTO deal.

NEW DELHI: Negotiations at the World Trade Organization (WTO) for a deal in Bali next month have entered the final leg with India on board to sign a four-year "peace clause" that will help it roll out the Food Security Act without any glitches and sign an agreement on trade facilitation, which will allow quicker flow of import consignments at ports and airports.

The "peace clause" will restrict the ability of other WTO members from seeking penalties against countries such as India and allow the government to procure grains at the minimum support price and sell it at subsidized rates through the public distribution system. Under the Agreement on Agriculture, such support cannot exceed 10% of the value of goods, while the government is inching close to the ceiling, raising the prospects of a penalty in the absence of the "peace clause". The clause will apply to all staples, which was also India's demand.

To push its interests further, the government wants the multilateral body to ensure that the "peace clause" is extended beyond four years in case the agreement on agriculture is not amended to address its concerns. On November 15, TOI was the first to report that the government was willing to accept a four-year peace clause.

On Monday, commerce minister Anand Sharma will get a negotiating mandate from the cabinet committee on WTO. He has sought "flexibility" to negotiate the proposal on food security since India's concerns have "largely been addressed" in the latest draft, said a source. Commerce department also wants a green light to agree to the draft trade facilitation agreement, keeping in view "national interest". Trade facilitation has been identified by WTO chief Roberto Azevedo as the "biggest iceberg in the sea" given the concerns expressed by the poor and developing countries in implementing the proposed agreement that will make imports easier but requires massive investments in upgrading infrastructure. With no resolution in sight, Azevedo moved his own proposal in Geneva on Friday that will carve out a special dispensation for the poorer countries and enable them to access funds to upgrade infrastructure and train manpower.

While things appear more settled on food subsidy, as reported first by TOI on November 13, Pakistan is still a stumbling block as it has "reserved its right" on the proposal by G-33, an alliance of developing countries, including Indonesia and China. What has come as a huge surprise is the U-turn by Pakistan, which was one of the proponents.

Source : timesofindia.indiatimes.com