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The World Trade Organization (WTO) is to hold an informal meeting on Wednesday with the heads of delegations, including of India, in Geneva. The aim is to ascertain the positions of countries on the post-Bali work programme, an important element being a solution to the food stock issue.
“The informal meeting is to kick off the negotiations aimed at reaching an agreement on the post-Bali work programme and wider Doha Round in the near future. This meeting will outline the countries’ positions on how to proceed and where there could be difficulties,” an official told Business Standard.
The outcome is expected to “feed into the ministers’ discussions in a way” when they meet in Davos on the sidelines of the World Economic Forum on Saturday for a ‘mini-ministerial’. The official added that negotiations on a permanent solution had started and should intensify in the next couple of months.
A WTO ministerial is the highest decision making body. A mini-ministerial refers to a meeting of ministers from some key countries like America, Germany, Canada, Australia, India, China and Brazil.
India will be represented by Finance Minister Arun Jaitley.
Developed countries are increasingly worried that developing countries such as India and China might be “reluctant” to negotiate a permanent solution to the food stockholding issue, now that they have a concession in a ‘Peace Clause’ that will be in perpetuity until a permanent solution, officials said. India and China run massive public stockholding schemes, resulting in huge subsidies.
WTO director general Roberto Azevêdo recently stated they’d put a mandate on the 160 member-countries to identify their negotiating stance on the entire Doha package by July. It has also set a deadline of December this year for a permanent solution to the food stock issue.
In December, the WTO is going to hold its 10th ministerial meeting in Nairobi, Kenya.
Under pressure from India, the WTO membership agreed to change what was agreed in Bali, Indonesia, during the ninth ministerial. Instead of four years, India obtained a permanent ‘Peace Clause’ that gives it freedom to grant unlimited subsidies to its poor and marginal farmers. This interim measure also gives immunity to India from challenges by other countries even if it exceeds the limit prescribed under earlier WTO norms.
