This Article is From Jul 30, 2014

As John Kerry Heads to India, US Hopes to End WTO Rift

As John Kerry Heads to India, US Hopes to End WTO Rift

File Photo: US Secretary of State John Kerry

Ramstein Air Base, Germany: The United States hopes to reach an understanding with India to prevent the collapse of a key WTO deal, an official said on Wednesday as Secretary of State John Kerry headed to New Delhi.

India has threatened to scuttle the so-called Trade Framework Agreement - which would streamline global customs procedures and must be ratified by WTO members by Thursday - unless the world body gives the green light to the developing power's stockpiling of food.

A senior US official said Washington was in talks with New Delhi on the row ahead of the visit by Kerry, who arrives late on Wednesday for an annual strategic dialogue between the two countries.

"We are hopeful that as we engage in those further conservations over the next few days that some agreement will emerge that will allow the TFA to move forward," the official told reporters on Kerry's plane, which made a refueling stop at Ramstein Air Base in Germany.

"We think that that is in India's interests, and we hope that that's going to be the right outcome," the official said, speaking under condition of anonymity in line with State Department custom.

India, which has sought since independence to eradicate hunger, buys grain at above-market prices from farmers and sells the food at subsidised prices to some of the hundreds of millions of poor people.

The stockpiling is popular with poor voters in the world's largest democracy, but wealthy nations say that the policy distorts global markets.

On Tuesday in Washington, US Trade Representative Michael Froman warned that blocking the customs pact would put at risk "the credibility of the WTO as an institution."

Mr Kerry will be the highest ranking official to visit India since the election victory in May of Prime Minister Narendra Modi, who has billed himself as a free-market reformer.

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