Modi govt blames developed nations for deadlock on WTO trade talks

The trade agreement was to be signed by July 31, but India wanted a single undertaking for all issues of the Bali round

India today sought to turn the tables on the developed countries accusing them of turning a blind eye to the interests of subsistence farmers in the developing countries and focusing just on their mercantilist interests during the ongoing World Trade Organisation (WTO) talks. 

The new government has been widely blamed for stalling a consensus on the Trade Facilitation Agreement (TFA) in the WTO negotiations, 

The TFA was to be signed by July 31, but India wanted a single undertaking for all issues of the Bali round such as finding a permanent solution to the public stock holding for food security and a package for the least developed countries.
 

"In contrast to their efforts on TFA in WTO, some developed countries have been reluctant to engage on other issues," commerce and industry minister Nirmala Sitharaman said in her statement on WTO in the Lok Sabha on Wednesday.

In the face of such reluctance, she said, developing countries feared that once TFA is signed other issues such as finding a permanent solution to subsidies on account of public stock holding would be ignored.

"India therefore took the stand that till there is assurance of commitment to finding a permanent solution to public stockholding and on all other Bali deliverables, including those for the least developed countries, it would be difficult  to join the consensus on the protocol for amendment on TFA," she said.

Sitharaman said the developing countries are fighting to keep the negotiations focussed on development against the single minded mercantilist focus of most of the rich developed world on the market access issues.

She said the balance is important even in a limited package of outcomes.

"The Bali outcomes were negotiated as a package and must be concluded as such. It is regrettable indeed that today WTO is unable to agree even to fast track the negotiations on an issue of such importance to millions  of subsistence  farmers across the developing world, while the rich  world continues to subsidize their farmers unabatedly."

She said India made a statement at WTO General Council in Geneva on July 25, conveying inter alia that adoption of TF Protocol must be postponed till a permanent solution on public stock holding for food security is found.

"India offered suggestions on the procedure to be followed to ensure a time-bound delivery of an outcome on public stock holding for food security," she said.

The minister said India stood firm on its demands despite immense pressures.

"The government of India is committed to protecting the  interests of our farmers against all odds. Our farmers work in extremely adverse conditions, most of them at the mercy of the  vagaries of monsoon, aggravated today by the climate change."

Attacked for obstructing the WTO deal, Sitharaman said India is an unwavering votary of multi-lateral trading system.  "We reiterate our commitment to WTO. The timely correction of an imbalance or anomalies in  the working of the system of its rules is critical to ensure that WTO works impartially and fairly in the interests of all its members and not just a select few,"  she said.