WTO: India unwilling to compromise on food security stance

NEW DELHI: India on Tuesday said it is unwilling to compromise on its demand for any dilution in its policy related to the minimum support price for farm goods at the World Trade Organization, even as Roberto Azevedo, who heads the multilateral agency, got down to getting members work out a solution and ensure that the agreement reached in Bali does not collapse.

Top government sources told TOI that India is not going to settle for anything that does not address its concerns and having a subsidy cap based on 1986-88 prices does not make sense. Since then prices have increased by up to six times, making the subsidy ceiling of 10% of the value of production virtually redundant for several developing countries, including China and Thailand.

"There will be no compromise on the issue of MSP. We are not coming in the way of a trade facilitation agreement, provided it moves in tandem with addressing our concern on food security," said a top-ranking official, who did not wish to be identified.

India has demanded that the WTO members postpone a final decision on a trade facilitation agreement, for which the deadline is July 31, till a permanent solution to its problems is found. In Bali, trade ministers had agreed that till 2017, even in case of a breach of the subsidy limit, a country will not be hauled up at the WTO. The issue has split the membership, with few takers for India's stand. Government officials also admit that other powerful emerging economies such as China and Brazil are not fully endorsing Indian's position.

Amid this, Azevedo met the coordinators of key groups such as the G-33, G-20 and LDCs, although nothing much seems to have emerged from the discussions. "This afternoon, director-general Azevedo met with the coordinators from 15 groups, representing a vast cross-section of the WTO Membership. The impasse on the Bali issues has raised deep concerns among WTO members on the future of Doha Round negotiations of which the 10 Bali agreements are a part. Director-general Azevedo briefed the coordinators on the state of play and outlined the steps he has taken so far and the actions he plans to take in the coming hours. He stressed that there are less than 48 hours to resolve the crisis and that all WTO Members should be on call to meet on short notice," a WTO spokesperson said.