WTO optimistic of a solution as it reviews progress this week

WTO Deputy Director said it was 'unfortunate' that the WTO member countries were not able to arrive at a consensus by the July 30 deadline

Amid India's tough posture over the food security issue, the WTO has expressed optimism of finding a solution as it reviews the progress of talks this week.

"We will be reviewing progress and looking at ways to advance this work starting from next week itself," WTO Deputy Director General Yonov Frederick Agah told PTI over the weekend.

Stating that it was "unfortunate" that the WTO member countries were not able to arrive at a consensus by the July 30 deadline due to strong opposition from New Delhi, Agah expressed optimism about its progress saying New Delhi has shown keenness in taking the stalled talks forward.

"The signals from India are that they are keen to find a solution to this problem, and that is very good," he said, adding "what is good is that it is not trade facilitation that is the main roadblock as there is support in India for this due to the economic benefits it will bring about," he said.

India refused to ratify the Trade Facilitation Agreement (TFA) in Geneva in late July untill permanent solution is found to the issue of public stockholding of foodgrain for its ambitious food security programme.

New Delhi has asked WTO to amend the norms to calculate agriculture subsidies which is currently based on two-decade-old base price, so that the country could continue to procure foodgrain from farmers at minimum support price and sell them to the poor at subsidised rates without violating the global trade body's norms.

The current WTO norms limit the value of food subsidies at 10% of the total food grain production value. However, the quantum of subsidy is computed after taking into consideration prices that prevailed two decades ago.

All the major power economies, including the US, have criticised New Delhi for the hard stance which resulted in the collapse of the TFA talks late July. The talks were to be sealed before July 31.