A Case of Modi vs WTO

WTO clinches first global trade deal in its history

HT Correspondent and Agencies  Geneva/New Delhi, November 27, 2014

First Published: 22:00 IST(27/11/2014) | Last Updated: 23:16 IST(27/11/2014)

 
Ending months of deadlock, the World Trade Organisation (WTO) on Thursday ratified a global deal to ease customs rules, making it the first agreement in the multi-lateral trade body’s history.

WTO director-general Roberto Azevedo (R) smiles next to spokesperson Ketih Rockwell before a special meeting of the General Council Preparatory Committee on Trade Facilitation at the WTO headquarters in Geneva. (Reuters Photo)

The deal was adopted by 160 member countries barely a fortnight after India and the United States resolved a major dispute over food subsidies, paving the way to remove a major irritant in adopting the trade facilitation agreement (TFA) to make global trade easier, faster and cheaper by making systems transparent and reducing red tape.
The agreement means the WTO will introduce new standards for customs checks and border procedures. Proponents say this will streamline the flow of trade around the world, adding as much as $1 trillion and 21 million jobs to the world economy.

“It’s all agreed,” a WTO official said outside the closed-door WTO meeting in Geneva.
In July, India had withstood mounting pressure from developed countries including the US, which had blamed New Delhi’s hard bargain strategy for the eventual collapse of the talks putting the WTO’s future on “uncertain ground.”
India, however, held the view that without a permanent solution on food subsidies, public stockholding programmes such as buffer stock of food-grains would be hampered.
Existing rules cap the value of food subsidies at 10% of the value of production. But due to the manner in which the support is calculated at prices of nearly three decades ago, many countries would find it difficult to stay within the limit potentially attracting strong penalties from the trade body.
India said this would affect its food security programme and food grain procurement through minimum support prices.
As part of the agreement, till such time the WTO members find a permanent solution on a formula to cap food stockpiling by government agencies for welfare schemes, no punitive measures will be pressed on countries for breaching the subsidy cap.
The roadmap for a permanent solution is expected by next year.
Prime Minister Narendra Modi and President Barack Obama’s personal intervention had helped India and the US resolve the row and get moving on the talks, US Trade Representative Michael Froman said earlier this week.
The reform package adopted on Thursday was agreed at a WTO meeting in Bali last December.

• 1 comment
• HindustanTimes
• SiDevilIam
•  

Start the discussion…

•  

SiDevilIam • 2 minutes ago

Celebrations over such joyful news item, may wait. Narendra Modi government, due to their lack of maturity in decision-making processes, has lost credibility, both at home and the world in general. The issue of food-grains stockpiling was never defined, nor was Modi's objections. Modi's servants only take orders, not advise him. His policy changes, as many times as his fancy, colorful personal dress.
Would somebody tell me that his silly attitude of stalling the last deadline has improved his or India's stature in the world? No poetic reply, please.
This is what has, actually happened at Geneva: '"We have put our negotiations back on track," WTO
Director-General Roberto Azevedo told a news conference held after
trade diplomats applauded the end of their 19-year wait for a deal'
Just for the record, in the current SAARC XVIII summit, Modi failed to impress momber states, particularly, Pakistan PM Nawaz Sharif, over four agreements, minus one over power (grid) sharing. Indian media, as usual, glorified Modi and demonized Sharif.
Modi has no negotiating skills. He knows how to kill negotiaton-oriented personal or state high level talks.
I don't like Modi, for good reasons. i have no malice against him. He must wake up and smell a fresh cup of coffee. I said coffee, not tea. Get away from his 'chaiwalla,' mentality. He has not now, or in his political past done anything that was above regular polite politics. His so called glory is man made. The man, here is, Modi.
let Modi answer my reservations against him, not his advertising agency or Akbaruddin-boy.
...and I am Sid Harth

 Source: HT