NEW DELHI: Negotiations at the World Trade Organization (WTO) for a deal in Bali next month have entered the final leg with India on board to sign a four-year "peace clause" that will help it roll out the Food Security Act
without any glitches and sign an agreement on trade facilitation, which
will allow quicker flow of import consignments at ports and airports.
The "peace clause" will restrict the ability of other WTO members from seeking penalties against countries such as India and allow the government to procure grains at the minimum support price and sell it at subsidized rates through the public distribution system. Under the Agreement on Agriculture, such support cannot exceed 10% of the value of goods, while the government is inching close to the ceiling, raising the prospects of a penalty in the absence of the "peace clause". The clause will apply to all staples, which was also India's demand.
To push its interests further, the government wants the multilateral body to ensure that the "peace clause" is extended beyond four years in case the agreement on agriculture is not amended to address its concerns. On November 15, TOI was the first to report that the government was willing to accept a four-year peace clause.
onika jaiswal
pgdm1st year
2013-15
source-toi
The "peace clause" will restrict the ability of other WTO members from seeking penalties against countries such as India and allow the government to procure grains at the minimum support price and sell it at subsidized rates through the public distribution system. Under the Agreement on Agriculture, such support cannot exceed 10% of the value of goods, while the government is inching close to the ceiling, raising the prospects of a penalty in the absence of the "peace clause". The clause will apply to all staples, which was also India's demand.
To push its interests further, the government wants the multilateral body to ensure that the "peace clause" is extended beyond four years in case the agreement on agriculture is not amended to address its concerns. On November 15, TOI was the first to report that the government was willing to accept a four-year peace clause.
onika jaiswal
pgdm1st year
2013-15
source-toi
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