Traders sit amidst stacked sacks, filled with onions and potatoes, at a wholesale vegetable market in the western Indian city of Ahmedabad August 1
India is confident that it will be able to persuade members of the 160-strong World Trade Organisation to understand its concerns over food security which derailed a global trade deal last week, said Commerce Minister Nirmala Sitharaman in parliament today.
The minister explained India's stand: that the Bali trade accord, an agreement reached on the Indonesian tourist island last year, should be concluded as a package, linking India's ratification of a trade facilitation treaty to movement on a parallel treaty on stockpiling of food.
"I am confident that India will be able to persuade the WTO membership to appreciate the sensitivities of India and other developing countries and see their way to take this issue forward in a positive spirit," she said amid thumping of desks by lawmakers.
Prime Minister Narendra Modi's government vetoed the adoption of a treaty to simplify, standardise and streamline the rules for shipping goods across borders, having previously agreed to its terms at the ministerial conference in Bali last December.
After drawing widespread condemnation, India has since said it is ready to sign the global trade deal as early as next month if other World Trade Organisation members agree to its demand for concessions on food subsidies, estimated at $12 billion a year.
"A permanent solution on food security is a must for us and we cannot wait endlessly in state of uncertainty while WTO engages in an academic debate on subject of food security," the Commerce Minister said.
India fears that once it agrees to trade facilitation - largely seen to help advanced nations - it would have lost the bargaining chip to be given more freedom to subsidise and stockpile food grains than is allowed by WTO rules.
© Thomson Reuters 2014