Hailing the breakthrough achieved by India and the United States in resolving the contentious food security issue, the United States believes it will unlock progress towards the “full and immediate” implementation of the WTO Trade Facilitation Agreement (TFA), lowering the costs of trade for developed and developing countries alike.
A White House statement referred to the extensive discussions between President Barack Obama and Prime Minister Narendra Modi on this issue, adding the President “appreciates his (Modi’s) personal leadership in finding a path forward”.
The statement noted that the breakthrough will also strengthen the multilateral trading system and give a boost to its ongoing work, including in the area of food security.
Welcoming the agreement, US Trade Representative Mike Froman said it “paves the way for full implementation” of the TFA, and that it also reflects “shared understandings regarding WTO’s work on food security”.
“We now look forward to working with all WTO members and with Director-General Roberto Azevedo to reach a consensus that enables full implementation of all elements of the landmark Bali Package, including the TFA”, Froman said in a statement, noting that the TFA is the first multilateral trade agreement to be concluded in the history of WTO.
Following the Obama-Modi talks on this issue, officials of both governments worked intensively and reached an agreement that should give new momentum to multilateral efforts at the WTO, Froman said, adding: “In doing so, the United States and India reaffirm their joint commitment to the success and credibility of the WTO.”
Terming it “a good week for trade”, Froman also touched on the breakthrough that the US achieved with China on the Information Technology Agreement, adding: “Together, these will provide a major boost to the global trading system at a critical time in the world’s economic recovery, a central focus of the upcoming G-20 Summit.”
A fact sheet, put out by the Office of USTR, said the agreement, to be presented for consideration by the full WTO membership in the near future, consists of two key elements.
One is that the landmark TFA “should be implemented without conditions, on the basis of a standard legal instrument for implementing new WTO agreements”, the fact sheet said, adding: “If accepted by the full WTO Membership, this approach will enable fully multilateral implementation of the TFA, unlocking immense commercial opportunities for all WTO Members, including especially developing country Members, by reducing costs and administrative burdens associated with moving goods across borders.”
As for the second element relating to understanding on specific food security programmes, the fact sheet said: “Both countries have reached an understanding on implementation of a December 2013 WTO decision regarding specific food security programs maintained by some developing countries. The bilateral agreement makes clear that a mechanism under which WTO Members will not challenge such food security programs under WTO dispute settlement procedures will remain in place until a permanent solution regarding this issue has been agreed and adopted. It also sets out elements for an intensified program of work and negotiations to arrive at such a permanent solution.”