We're on borrowed time, says WTO as trade impasse continues

NEW DELHI: The WTO has been unable to break the impasse after India vetoed an agreement on trade facilitation in July. US blamed India for not accepting its latest offer of an indefinite peace clause to progress on the trade facilitation deal.

"First, we have not found a solution for the impasse-...deadline on the Trade Facilitation Agreement passed more than two months ago. We are on borrowed time…as I feared, this situation has had a major impact… there is now a growing distrust which is having a paralyzing effect on our work across the board," Director general Roberto Azevedo said in his statement at the trade negotiator's meeting on Thursday.

Nirmala Sitharaman had said on Wednesday that India's position at WTO regarding food security remained unchanged. US had agreed to clarify in September that the peace clause or the due restraint mechanism will be an indefinite one till a permanent solution on public stockholding was found.

"US made a specific offer of new flexibility to clarify that the duration of the Bali due restraint mechanism would last until Members reached agreement on a permanent solution for food security…For the time being, our offer stands as a way out of the current morass, but it has not been accepted," US ambassador to WTO, Michael Punke said in its statement.

In July, India had asked the developed countries to clear ambiguity on the peace clause, which should continue till a permanent solution on food security is agreed, against what is inferred by the rich countries as just a four-year window under which no country could be penalized for breaching the farm subsidy cap.