Redouble efforts to find food security solution by Dec: WTO

WTO chief Roberto Azevedo today asked the member countries to "redouble efforts" to meet the deadline for finding the permanent solution for the food security purposes, a key area of interest for India.
He said WTO has a clear mandated deadline for finding solution by the forthcoming ministerial meeting, which is scheduled in December in Argentina.
"So, we must redouble our efforts to meet the deadline," he said, adding the issue is important as this decision protects developing countries from legal challenges at the WTO in connection with governmental support for stock piling of staple food at guaranteed prices.
The Director General of the World Trade Organisation (WTO) said it was particularly important for India but "there is a lot of work to do".

"So, now what we are trying to do is whether by December, we can come up with a permanent solution for that," Azevedo told reporters here.
He also said the G-33 group of countries, which includes India, has submitted a proposal in this regard with the Geneva-based body.

However, he said, that proposal has not evolved over time and "I am not sure whether convergence can be found on the basis of that proposal without further revisions".
For a permanent solution, India had proposed either amending the formula to calculate the food subsidy cap of 10 per cent, which is based on the reference price of 1986-88, or allowing such schemes outside the purview of subsidy caps.

Finding a solution is important for India as it would help in smooth implementation of its food security law.
Further commenting on India's economy, he said India is the fastest growing G20 economy and there are strong signals that would continue on this path.
"India is carrying out a wide range of reforms to improve and strengthen institutions. The demonetisation initiative to help formalise the economy is not just the example of the effort....," he added.
He also said that tax reforms and ease of doing business would help in attracting foreign investments.
On India's proposal of a trade facilitation agreement

(TFA) in services, Azevedo said it is a positive proposal and "we can do more in terms of facilitating business".
"Services sector is the biggest contributor in the global trade...It is a right and a legitimate proposal and we welcome it. Now, we have to see how much interest it can raise among the members," he said.
He added that the proposal was well received but "members are still waiting for clarifications because it is still a conceptual paper. We need to get into more details".
India has floated the note saying the pact will reduce transaction costs by doing away with unnecessary regulatory and administrative burden on trade in services.

Talking about the global trade scenario, Azevedo said WTO expects the final figures for trade growth in 2016 to be around 1.7 per cent and that would be the slowest pace of growth since the financial crisis.
Raising concerns over increase in protectionism across the globe, he said inward looking policies or turning towards protectionism is not going to help.
On the contrary, he said, it will make things worse and dampen the prospects of economic growth everywhere including in India.
He also said India is seeing a transformative potential of technology with the IT products and services becoming increasingly important in the economy.

The WTO DG said country's should not reject this and instead "we must embrace them and we have to learn to adopt the new reality".
On the trade facilitation agreement (TFA) in goods, he said it will enter into force in the coming weeks.
It has huge economic benefits and globally the pact could boost exports by about USD 1 trillion every year.
If fully implemented, it would reduce trade cost by up to 13.9 per cent for India, he said, adding members should also work on the pending agenda of the Doha Round of talks.
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Asked about the possible impact of the policies of the new US administration on WTO, Azevedo said he can not comment as America has yet to appoint missions for Geneva and US Trade Representative.

He further said the WTO members took a set of decisions on agriculture in 2015, including a recommitment to advance work on an agricultural special safeguard mechanism and a deal to abolish agricultural export subsidies.
"There is much more to do in order to reduce distortions in agricultural markets, but these were important steps forward," he said, adding that eliminating these export subsidies is the biggest reform in global agriculture trade for 20 years.
He felt that the next ministerial conference in Buenos Aires could be an important opportunity to make further progress.
"The debate at the WTO is very dynamic at the moment. Members are discussing how we can make progress in a wide range of areas - including on long-standing negotiating issues that are part of the Doha round," he said.

He added that many of the issues being discussed are of importance to India.
Further, he said work is also ongoing on a special safeguard mechanism for developing countries, which will help deal with import surges or price declines of food products that can harm domestic production.
"There is strong support for this, particularly from developing countries that are net food importers," he added.
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Azevedo said first Prime Minister Jawaharlal Nehru had described India as a country "on the verge of bold advance" and "I think it's fair to say that this vision is bearing fruit today".

India is now the fastest growing G20 economy, with GDP growth forecast at 7.2 per cent in 2017, he said, adding that there are strong signs that the country will continue on this path.
"India's commitment to stimulate growth and lift the poorest and most vulnerable is quite evident and must be praised," he said.
India is carrying out a wide range of reforms to improve and strengthen institutions, he said, adding that the demonetisation initiative to help formalise the economy is an "obvious example".
According to him, tax reforms will also make India an even more attractive destination for investments, besides leading to gains in scale and more effective supply chains.

"I think we are seeing India take its place on the world stage as a confident, dynamic country, which is ready to do business," he added.
"I think that these are all positive developments, especially in the current global context.