India on 3 yr Plus Peace Clause on Food Security in Return for “Yes” on TF

India’s consent to the temporary waiver being negotiated at the World Trade Organisation (WTO) to allow developing countries to go beyond their permitted food subsidy limits will depend on its duration and the food items covered by it.

The Government may also not agree to possible conditions attached to the waiver such as linking it to international availability of foodgrain and global prices as proposed by some developed countries.

“We want the temporary waiver or the peace clause to be in place for much longer than the three years being offered by developed countries and all major foodgrains should be covered by it. The waiver should be applicable irrespective of the global market situation,” a commerce ministry official said.

A group of more than 40 developing countries including India, Indonesia and the Philippines, formally known as the G-33, have been trying to convince the WTO to amend its farm pact (Agreement on Agriculture) to remove limits on public stock holding and food aid.

It is important for India to get a waiver because once its new Food Security legislation, which offers 5 kg of subsidised foodgrain to about two-third of its population, is fully implemented, it will breach the existing food subsidy limits fixed at 10 per cent of total production.

In return, these countries will support a Trade Facilitation agreement being pushed by developed countries to improve customs infrastructure and ensure time-bound clearance of shipments.

WTO members are hopeful of signing both agreements at the meeting of trade ministers from all 149 member countries in Bali, Indonesia, in December. These pacts are expected to give a boost to the Doha Round of negotiations launched in 2001.

There is also no agreement on what safeguards would be available to prevent the release of the stocks from affecting international markets, and how countries using the provisions would provide enough information to make their actions transparent.