UK, US oppose extending WTO food subsidy clause

NEW DELHI: The US, UK, EU and Japan have opposed extending the temporary peace clause agreed upon at the 2013 World Trade Organization (WTO) Bali conference that prevents legal action against any developing nation that breaches the food subsidy limits specified in the agreement on agriculture.

At an agriculture negotiation meeting at the WTO on Monday, the US said India’s expansion of support to its rice and wheat farmers has negative spillover effects. India has invoked the clause thrice.

“India said that the strongest evidence supporting the necessity of public stockholding was in its own actions during the pandemic, when it mobilised its food stocks and provided food to 80 million people in 18 months’ span,” said a Geneva-based official.


Public stockholding is a policy tool used by governments to purchase, stockpile and distribute food when needed.

Developing countries’ food subsidies are protected by an interim peace clause which shields food procurement programmes against action from WTO members in case the subsidy ceilings—10% of value of food production in the case of India and other developing countries—are breached.

India, Indonesia, South Africa and China are among the 80 WTO member countries that have called for initiating text-based negotiations to find a permanent solution on public stockholding (PSH) for food security. Developing countries and the African Group have demanded a food security package at the 2024 conference.

Their joint proposal represents 6.6 billion people and more than 80% of the global population.