India speaks out on objections to WTO Trade Facilitation Agreement

The Dollar Business Bureau | @TheDollarBiz   The Indian government says that it did not support the ratification of Trade Facilitation Agreement (TFA) by the July 31, 2014 deadline due to the apprehension that concerns over food security would be brushed aside by developed countries if a permanent solution on food subsidies is not found first. India’s Minister of Commerce Nirmala Sitharaman told the Parliament today, “Seeing the resistance to taking forward the other Decisions [agreed at the Bali conference], the apprehension of developing countries was that once the process of bringing the Trade Facilitation Agreement into force was completed, other issues would be ignored, including the important issue of a permanent solution on subsidies on account of public stockholding for food security purposes.” Sitharaman also said that India has made several proposals to help find a permanent solution on public stockholding limits for food security, and added that several countries have supported India’s stand on TFA and food subsidies. However, Sitharaman reiterated that India remains a supporter of TFA and will persuade WTO members to appreciate the sensitivities of India and other developing countries. TFA aims to simplify customs procedures and boost global trade. It is considered as the first major agreement among WTO members since its inception in 1995, but the protocol could not be ratified due to India’s objections. Last week, the WTO Director-General Roberto Azevêdo expressed disappointment over the delay to ratify the TFA and warned of consequences. Members are slated to meet in September to arrive at a consensus on TFA.