India's threat to stall trade pact casts shadow over B-20 meet

SYDNEY: Global business leaders stressed that a multilateral agreement was not possible without mutual compromises by participating countries, skirting India's latest threat to stall the trade facilitation protocol ( TFP) if its demand for higher levels of domestic support for food security was not addressed.

The issue of India holding back TFP echoed at the B-20 meeting (business meet of G-20), which is to be followed by G-20 trade ministers meeting on Saturday.

India is threatening to stall TFP that was to be clinched by July-end as per the Bali agreement though it was agreed that the developed world would in return look at the demands of the developing world on upping the subsidy cap for food security.

Few participants were willing to take a critical tone on the issue, with none naming India to the media. But there was evidence of discomfiture at the turn of events.

Rio Tinto CEO Sam Walsh said the negotiations were complex and difficult, and would form part of the process at the trade ministers meeting. GE vice-chairman John Rice said multilateral pacts would not be possible if countries did not compromise.