WTO inks its first global trade deal, takes India's concerns on board

The World Trade Organization (WTO) has adopted the first worldwide trade reform in its history, after years of stalemate, months of deadlock and a final day's delay following an eleventh-hour objection.

The historic trade facilitation agreement (TFA) would now need to be ratified by governments of individual member countries, including India, for coming into effect which is expected some time next year.

Ending months-long deadlock, WTO on Thursday approved a trade facilitation pact while agreeing to India's demand for continuing the peace clause till a permanent solution is found to the food stockpiling issue, crucial for continuing food security scheme.

"Until a permanent solution is agreed and adopted...(WTO) members shall not challenge through the WTO Dispute Settlement Mechanism, compliance of a developing Member with its obligations ...of the Agreement on Agriculture in relation to support provided for traditional staple food crops in pursuance of public stock-holding programmes for food security purposes existing as of the date of the Bali Decision," WTO said.

WTO's General Council, the highest decision making body, met in Geneva on Thursday and accepted India's demand for extending the peace clause till a permanent solution is found for its food stockpiling issue.

It said that if a permanent solution for the issue of public stock-holding is not agreed and adopted by the 11th Ministerial Conference (2017), "the mechanism...shall continue to be in place until a permanent solution is agreed and adopted".

On TFA, it said that the pact for easing customs norm was adopted by WTO members for acceptance.

On the positive development in Geneva, WTO Director General Roberto Azevedo said this is a very important moment for the multi-lateral trade body.

"By agreeing these three decisions we have put ourselves back in the game. We have put our negotiating work back on track... that means all the Bali decisions: trade facilitation, public stock-holding, the LDC (least developed countries) issues, the decisions on agriculture, development, and all of the other elements," he said.

Thursday's decision is crucial for India to meet over Rs 1 lakh crore a year food security programme, which needs 62 million tonnes of foodgrain in a year.

This will enable India to continue procurement and stocking of foodgrain for distribution to poor under its food security programme without attracting any kind of action from WTO members.