Govt defends stand at WTO

The ministry of commerce and industry stated, in response to domestic criticism, that it had not made any "binding commitment" in the trade facilitation agreement (TFA) during the recent ninth ministerial conference of the World Trade Organization (WTO) in Bali, Indonesia.

The fine print is to be worked out and the final agreement signed by July 31, it stated. "We wanted something in trade facilitation to hold on, till we got something in food security.Of the three issues bracketed by us, the language in two was substantially diluted," Rajeev Kher, special secretary and chief negotiator in the ministry, told reporters here on Monday.

Kher said India had objections on three main issues in the TFA. These were related to release of goods by furnishing a bank guarantee, a limitation for initiating a penalty proceeding and express or air couriers.

"In most of these issues, we were adequately taken on board. The balance is clear. About 80 per cent of what we wanted was adjusted and the remaining 20 per cent could not be adjusted. The period of transition and pace will be decided by us as part of the Bali work programme," he added.

According to Commerce Secretary S R Rao, the infrastructure upgradation needed under the TFA, which seeks to streamline customs regulations, has to be done to make the Indian economy more competitive.

He highlighted the government's plan to invest $1 trillion to improve roads, ports and airports. He said how India would proceed on the TFA is to be decided as part of the post-Bali work programme.

On caps in subsidies on public stockholding of essential foodgrain such as rice and wheat, Kher said the government did not want the 'Due Restraint clause' or 'Peace clause' to continue in perpetuity.

"A permanent solution will be negotiated. Countries will agree only when there will be satisfaction. The 'due restraint' mechanism is a route to be taken by choice. I can be in excess of De Minimis but I can refuse to take recourse to Due Restraint," Kher explained.

A 'peace' or 'due restraint' clause' implies an interim period within which a developing country can provided unlimited food subsidies for a public stockholding programme without being subjected to any challenge by other WTO members.