In a major victory for India, the WTO has agreed to allow countries to provide subsidy on staple food crops without any threat of punitive action. The organisation has issued a revised draft of the Bali package, which addresses India's concerns on food security. After tough negotiations over the past four days in the face of India's unrelenting stand on the food security issue, the 159-member WTO reached a historic agreement that will boost global trade by 1 trillion dollars.
The draft has proposed an interim solution with a peace clause of four years during which a permanent mechanism will have to be finalised.
Significantly, it would not preclude developing countries from rolling out their own food security programmes as it will include only existing programmes -- key concerns for India that is implementing the Food Security Act.
However, developing nations will be bound to notify the World Trade Organization's Committee on Agriculture if they are in danger of capping the 10 per cent subsidy limit. It also prohibits any market distorting activities and will be monitored closely by the WTO.
Fulfilling the major concerns of the US and the EU, the draft text has also called to put in place the Trade Faciliation pact over the next two years for which a preparatory committee would be set up. The pact will put in binding rules to ensure easier movement of goods, adding $ 1 trillion to the global GDP according to a study.
The draft has proposed an interim solution with a peace clause of four years during which a permanent mechanism will have to be finalised.
Significantly, it would not preclude developing countries from rolling out their own food security programmes as it will include only existing programmes -- key concerns for India that is implementing the Food Security Act.
However, developing nations will be bound to notify the World Trade Organization's Committee on Agriculture if they are in danger of capping the 10 per cent subsidy limit. It also prohibits any market distorting activities and will be monitored closely by the WTO.
Fulfilling the major concerns of the US and the EU, the draft text has also called to put in place the Trade Faciliation pact over the next two years for which a preparatory committee would be set up. The pact will put in binding rules to ensure easier movement of goods, adding $ 1 trillion to the global GDP according to a study.
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