New Delhi, November 13
In a major breakthrough over the stalemate in the World Trade Organisation (WTO), India and the United States announced they have resolved differences on public stockholding for food security through a peace clause which will open the route for implementation of the Trade Facilitation Agreement (TFA) or easing of customs procedures, expected to add $ 2 trillion to global trade.

Announcing the development, Commerce and Industry Minister Nirmala Sitharaman said, “We are extremely happy that India and the US have successfully resolved their differences relating to the issue of public stockholding for food security purposes in the WTO in a manner that addresses our concerns”.

India had been seeking a peace clause in which issues related to food security will not be raised till a permanent solution is found.

A statement by US trade representative Michael Froman said the agreement announced today between the United States and India paves the way for full implementation of the WTO’s Trade Facilitation Agreement, the first multilateral trade agreement to be concluded in the history of the WTO. The agreement also reflects shared understandings regarding the WTO’s work on food security.

The statement said that efforts to put the TFA in place were dealt a setback in July, when a small group of countries led by India, raised concerns about the status of the WTO’s work on food security issues and blocked consensus on implementing the TFA. “We have overcome that delay and now have agreement with India to move forward with full implementation”, the trade representative said. The meetings between Prime Minister Narendra Modi and President Barack Obama have helped to end the impasse during Modi’s visit to US.

On the breakthrough on the food security issue, US trade representative announced that both countries have reached an understanding on implementation of a December 2013 WTO decision regarding specific food security programs maintained by some developing countries.