India and US Resolve WTO Food Dispute

India and the US have resolved their disagreements on food security issues, paving the way for the implementation of a global trade pact.

The deal to simplify trade procedures was done at a World Trade Organization (WTO) meeting summit in Bali in Indonesia last year.

But India has been blocking implementation of that agreement.

It wanted assurances that its food security programme would not be challenged under the WTO’s rules.

India’s concern was that complaints based on rules limiting farm subsidies might undermine its spending on food stockpiles intended to ensure that the poor have enough to eat.

Food security programmes are covered by a so-called “peace clause” in which countries agreed to refrain for making such challenges until 2017. The US has now agreed to extend that commitment, in effect indefinitely. This bilateral agreement between the US and India still has to be endorsed by the full WTO membership, and it’s likely to be discussed in the Organization’s General Council next month.

The breakthrough stems from a bilateral summit in September when Prime Minister Narendra Modi visited the US.

It clears the way for the WTO to press ahead with the Trade Facilitation Agreement that was done in Bali.

via BBC

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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