JOIN USIndia on Thursday stuck to its stand on food security issues taken at the World Trade Organisation (WTO) notwithstanding the pressure by the US, which engaged in hectic parleys on the matter with Indian leaders, hoping for a “compromise”.
US Secretary of State John Kerry and Commerce Secretary Penny Pritzker held a series of meetings with leaders, including Finance Minister Arun Jaitley and Commerce Minister Nirmala Sitharaman, to persuade New Delhi to agree to dilute its tough stand on WTO’s Bali package.
After the fifth Indo-US Strategic Dialogue, while External Affairs Minister Sushma Swaraj said she would wait for the outcome of the consultations at Geneva, Kerry hoped that a compromise would be reached with regard to ongoing deliberations.
Earlier, Sitharaman had told reporters after her meeting with the visiting US leaders that, “Our stand remains the same”. The WTO members have to adopt the protocol on the Trade Facilitation Agreement (TFA) on Thursday night.
The US also proposed a new framework deal to facilitate its companies to play greater role on development of infrastructure in India. Pritzker had a meeting with Sitharaman and gave her a draft of the proposed Memorandum of Understanding for India-US Infrastructure Initiative. The deal is expected to be negotiated over the next few weeks so that it could be considered during the Modi-Obama meet in September.
Speaking on the WTO issue, Kerry said, “Our feeling is obviously that the agreement that was reached in Bali can provide for food security in India. We do not dismiss the concerns India has about large numbers of poor people who require some sort of food assurances, assistance.
“We believe there is a way to provide for that. That will adhere to the WTO Bali agreement. So we are obviously encouraging our friends in India to try to find a path here, a compromise both need. We think that is achievable and we hope it is achievable.”
India has been maintaining that it would not adopt the protocol on the TFA until a permanent solution is found on the public stockholding for food security purposes.
An official on the condition of anonymity said that India has suggested a way of action to break the impasse and it is for the developed world to respond.
The new formula “was on the broad contours of” India’s stand, the source said, adding that the Bali deal need not collapse even if the July 31 deadline is not met.
The WTO has already missed as many as 27 deadlines on various issues.
For adoption of the TFA, which aims at simplifying customs procedure and promoting global trade, the consent of all 160 WTO members is necessary. New Delhi is pressing for an amendment to WTO norms regarding the stockpile of foodgrain, an issue critical to India’s food security programme.
The current WTO norms limit the value of food subsidies at 10 per cent of the total value of foodgrain production. However, the support is calculated at prices that are over two decades old. India is asking for a change in the base year (1986-88) for calculating the food subsidies. It wants a change taking into account inflation and currency fluctuation.
“In weeks to come, we will take series of steps to pave the way for Prime Minister Narendra Modi’s visit to the US in September,” Kerry said, addressing a news conference with Swaraj after the strategic dialogue. He said that while the US was excited about the reforms promised by the Modi, it would like to see his government acting fast to deliver on promises. “The proof will always be in the pudding,” said the top US official.