Government working on internal processes to ratify WTO's trade facilitation agreement

Source: PTI

The government is working on internal processes to ratify WTO's trade facilitation agreement (TFA), which looks to ease Customs procedures to boost trade, a senior commerce ministry official today said. "India is fully committed to honouring its international obligations and is working on its notification commitments as well as internal processes for ratifying the agreement," the official said. Last year, India had decided not to join the consensus at WTO on TFA implementation till its concerns on implementation of public stockholding for the food security purpose were addressed. Once this was done through a decision of WTO's General Council, the highest decision-making body of the organisation, India joined the consensus on implementing TFA. TFA aims at simplifying Customs rules, increasing transparency and reducing transaction costs for traders. The official also said India is working with other WTO members to ensure a balanced and positive outcome at the Nairobi ministerial meeting, including the food security issue. The Nairobi meeting is slated to be held on December 15-18. The WTO's General Council had accepted India's demand for extending the peace clause till a permanent solution is found on food stockpiling. This has enabled India to continue procurement and stocking of foodgrain for distribution to the poor under its food security programme without attracting any kind of action from WTO members even if it breaches the 10 per cent subsidy cap as prescribed by the multilateral trade body. 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. If no solution is found by the agreed deadline of December 31, the peace clause will continue till the time a solution is found.      

August 01, 2015 | 6:03 pm IST.