Govt pins hopes on G20 for breaking the trade talks impasse

There is greater understanding, there is appreciation and engagement with the WTO: Nirmala Sitharaman

The government believes there will be some movement at the G20 countries’ meeting in Brisbane on Sunday and Monday on the stalled talks regarding a global Trade Facilitation Agreement (TFA) and India’s demand for a parallel pact on public stockholding for food security purposes.

Prime Minister Narendra Modi is expected to take up the issue with US President Barack Obama during one of their interactions during the Asean and G-20 summits.

“After the PM’s visit to the US and his meeting with Obama, both governments are now much more comfortable in discussing these issues. The G20 joint statement might indicate a positive movement,” a senior official, who refused to be identified, told Business Standard.

The talks had reached an impasse at Geneva, headquarters of the World Trade Organization (WTO), over adoption of an amendment on the TFA and public stockholding for food security. These are crucial parts of the Bali Agreement signed in the ministerial meeting of December 2013.

“Lights are still on at Geneva, lights are not off,” said another official in the commerce department, involved with the WTO negotiations.

Last week, while speaking at the Asia Pacific Economic Cooperation (APEC) ministerial meeting in Beijing, WTO Director-General Roberto Azevêdo asked its leaders to help break the impasse which “has shut down multilateral negotiations”.

He reiterated that there could be a scenario where some key members which want to implement the TFA get together and sign the deal plurilaterally, outside the purview of WTO and essentially keeping India out.  However, he did also indicate that some “key delegations” had resumed talks to “resolve the impasse and move forward”.

Ever since India decided to veto signing of the TFA, the deadline for which was July 31, its government and that of the US have got into an imbroglio of sorts. Only some countries support India’s stance that when TFA gets converted into a legally binding agreement, a clear one on food stockpiling should also be signed.

The US has said not signing the TFA would indirectly signal “collapse of the Bali talks”, which means other issues that were agreed to be discussed as part the Bali package would not be negotiated. India has remained firm on its stand.

But recently, Minister of State (Independent Charge) for Commerce and Industry Nirmala Sitharaman said, “There is greater understanding, there is appreciation and engagement with the WTO”.

She also said the PM’s visit to the US and his subsequent meetings with Obama had led to the US authorities being “appreciative of what we are narrating”.