【GENEVA】India's tough diplomacy blocked a landmark world trade treaty late on the 31st July, despite last-ditch talks to rescue what would have been the first global trade reform since the creation of the World Trade Organization 19 years ago.
Trade diplomats in Geneva have said they are "flabbergasted", "astonished" and "dismayed" and described India's position as "hostage-taking" and "suicidal". Here are nine reasons why they say India's stance made no sense.
○Kerry gives vent to America’s disappointment
【NEW DELHI】Giving vent to America’s disappointment over India’s stance at the World Trade Organisation (WTO), US Secretary of State John Kerry on the 1st of August told Prime Minister Narendra Modi that New Delhi’s refusal to support a global deal for overhaul of custom rules sent out a “confusing signal”.
Kerry also said that it undermined the new BJP-led government’s business-friendly image. Modi told Kerry that the US must understand that India has to protect its right to ensure food security of millions of poor.
○The day after, India agrees to re-engage on WTO pact
【New Delhi 】A day after its firm stand on food security put the multilateral process at the World Trade Organisation to liberalise global trade in jeopardy, India has vowed to help the same and suggested efforts to build a consensus on “all outstanding issues” could be resumed in September.
In a turn of events, India on the 1st of August said it was “hopeful” talks for a global deal on easing Customs norms, or a trade facilitation agreement (TFA), would be revived in September, even as it failed to meet the July 31 deadline due to lack of consensus among members over food stockholding and farm subsidies. Prime Minister Narendra Modi is scheduled to visit the US in September to meet US President Barack Obama.
New Delhi agreed to re-engage in the talks for both trade facilitation and permanent solution for food security but said during the period of negotiation it would need the comfort of the promised “peace clause” being surely available. The peace clause is meant to give developing countries immunity on any violation of limits on public stockholding for food security.
○India won't back WTO trade protocol unless food security concerns addressed
【New Delhi】India stuck to its guns at the World Trade Organization in defiance of developed nations with a strongly worded statement at the general council meeting in Geneva on the 25th July that it will not agree to any accord on trade facilitation unless food security issue is also taken up, signalling its intent to take a hard stand on July 31, the deadline by which a decision has to be made.
India’s decision to block a new global customs rules at the WTO meeting in Geneva on Friday followed Prime Minister Narendra Modi’s direction to negotiators that liberalisation of global trade should not be at the cost of food subsidies in the country. India is firm on not signing the Trade Facilitation Agreement by the July 31 deadline unless its concerns on food security are on the negotiating table.
○US disappointed over India's stance in WTO
【Washington】The US on the 26th July expressed disappointment over India's stand on worldwide reform of trade facilitation rules saying "backsliding" on commitments has brought the World Trade Organisation (WTO) to the brink of crisis.
At the meeting of the 160-member WTO in Geneva, India demanded a halt to the Trade Facilitation Agreement (TFA) timetable till a permanent solution on public stockholding for food security is found. The meeting was to finalise a deal on TFA that was agreed at talks in Bali last December in the WTO's first ever global trade agreement.
【News source】
WTO $1-trillion deal fails: Nine reasons why India's veto shocked the world
India's stand at WTO upsets US
The day after, India agrees to re-engage on WTO pact
India hopes WTO pact talks will be revived in September
India won't back WTO trade protocol unless food security concerns addressed
India threatens to scuttle WTO deal on customs norms
WTO General Council may reconvene tomorrow, India firm on food security
US disappointed over India's stance in WTO
US disappointed over India's stance in WTO
US unhappy with India’s WTO stance
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