Giving strong message to WTO, India on Friday said it will not ratify the trade facilitation pact until a permanent solution is found on food security and other issues of poor nations impacting livelihood of millions.
"To jeopardise the food security of millions at the altar of a mere anomaly in the rules is unacceptable," India said in the two-day General Council meeting that concluded in Geneva.
With India taking a strong stand, it will now be difficult for the developed nations to push their agenda of implementing the Trade Facilitation Agreement (TFA). With this deadlock, the WTO will miss another deadline to implement a pact. The world trade body is scheduled to ratify the TFA till July 31.
"In order to fully understand and address the concerns of members on TFA, my delegation is of the view that the adoption of the TF protocol be postponed till a permanent solution on public stock holding for food security is found," the Indian Ambassador to the WTO Anjali Prasad said.
Regretting that in the last seven months no progress has been made on the public stock-holding for food security purposes, India said: "We do not have the required confidence and trust that there will be constructive engagement on issues that impact the livelihood of a very significant part of the global population."
Amendment to World Trade Organisation (WTO) norms regarding stockpile of foodgrains is critical for India for implementation of its food security programme.
The current WTO norms limit the value of food subsidies at 10 per cent of the total value of food grain production. However, the support is calculated at the prices that are over two-decade old and not at current prices.
India is asking for a change in the base year (1986) for calculating the food subsidies. The US gives about $120 billion as agriculture subsidy as compared to India's $12 billion.
The final protocol for the TFA, which is dear to the developed world, including the US and Australia, was concluded by the WTO members, but no single meeting has happened on India's food security related issues.
Although an agreement was reached in WTO's Bali meetinglast year after a gap of about two decades, it may now hit a roadblock with the developed countries, including the US, Australia and Europe pushing their own agenda of TFA and ignoring the concerns of the emerging and poor economies.
The TFA, which aims at simplifying customs procedure, increasing transparency and reducing transactions cost, is being pushed by the US and others as they seek to bolster their sagging economies through an unhindered international trade by way of a uniform and easy procedures at customs.
A large block of global powers have joined hands against New Delhi in Geneva on the TFA issue. In two separate statements the European Union and an Australia-led group of more than two dozen countries have asked India not to veto the TFA.
The European Union in a statement said without adoption of TFA by July 31 a great opportunity to mobilise trade as an instrument for growth and development would be lost and the credibility of the WTO would be further damaged.
"The Bali outcomes were negotiated as a package and must be concluded as such. Timelines are important but we cannot afford to act in haste in the WTO ignoring the concerns expressed by Members," India said.Responding to concerns that WTO's is facing a credibility crisis, India said the failure of the WTO to work in the interests of all its members and to deliver meaningfully on the "development" mandate of the Doha Development Round would pose a far more serious risk to its credibility than any other factor.