US Says India is Sending Wrong Signal With WTO Refusal

U.S. Secretary of State John Kerry told Prime Minister Narendra Modi on Friday that India’s refusal to sign a global trade deal sent the wrong signal, and he urged New Delhi to work to resolve the row as soon as possible.

A World Trade Organisation pact to ease worldwide customs rules collapsed late on Thursday over India’s demands for concessions on agricultural stockpiling.

“Failure to sign the Trade Facilitation Agreement sent a confusing signal and undermined the very image Prime Minister Modi is trying to send about India,” a U.S. State Department official told reporters after Kerry’s meeting with Modi.

 
Kerry was in New Delhi as part of an annual strategic dialogue to revitalise ties and lay the ground for a visit by Modi to Washington in December.

The official said the meeting was “strong and positive” despite the breakdown at the trade talks in Geneva.

Several WTO member states voiced frustration after India’s demands led to the collapse of the first major global trade reform pact in two decades. WTO ministers had already agreed the global reform of customs procedures known as “trade facilitation” in Bali, Indonesia, last December, but were unable to overcome last minute Indian objections and get it into the WTO rule book by a July 31 deadline.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza