The print media in India has this morning in bold headlines announced a"breakthrough" in the context of the stalled Trade Facilitation Agreement initiated by the WTO. Just a small sample: h<ttp:// www.livemint.com/Politics/v2gAFo8koulnFNRr5p943O/India-likely-to-announce-WTO-breakthrough.html>, < http://www.thehindu.com/news/national/us-resolve-impasse-over-food-security-issues-at-wto/article6594065.ece>, < http://www.thehindu.com/business/top-us-trade-groups-applaud-india-and-us-on-wto-agreement/article6597782.ece >.
The *livemint* news report rather euphorically contends: US support for the massive public food stockholding programme also signals a political victory for Prime Minister Narendra Modi, who seems to have won the deal without any major concessions--at least, not to public knowledge. [So there is perhaps something which has been kept beyond "public knowledge". A dark hint, and not pursued further. Never mind] The *Hindu* appears to be far more objective: ***This proposal will seek to make open-ended the interim protection of a 'peace clause' that was agreed to at the Bali Ministerial last December.*** [Emphasis added.] ***What must be noted here is that a "permanent solution" is yet to be arrived at.*** That may, or may not, have disturbing implications. One does not really know what shape the "permanent solution" will eventually take, as and when it is firmed up. That's a big uncertainty. In fact ***the TFA had been stalled, by the NDA-led India, precisely on the ground that this uncertainty be removed before we move ahead with the TFA***. Obviously, now the self-same NDA government has abandoned that position. ***This is a point nowhere highlighted***. Of course, such give-and-takes are routine parts of a negotiation process. But ***the dark hint, rather unintentionally let out by the *livemint* report and the inherent uncertainty have to be kept well in mind.*** *The very core of the "breakthrough" deal appears to be: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.* Reproduced below is the forwarding note, in full, to the mail (also available at: < https://groups.yahoo.com/neo/groups/india-unity/conversations/topics/54346>), *WTO, Stalled TFA and India: Two Opposing Views and a Report*, posted on the last August 3 (by this poster), followed by the communique released by the U.S. Trade Representative Michael Froman, and an explanatory note made available by the US.] I/III. It's just a canard that the stand of the Modi government this time in Geneva, at the WTO negotiations, is a departure from that of the preceding UPA II. Even at Bali last December, Anand Sharma, the then Indian Commerce Minister, fought long and hard to the very last, on the issue of subsidy linked to food security, and steadfastly refused to give in. At the same time, he also avoided being painted as the (sole) deal-breaker. So eventually a compromise was arrived at (see.: < https://mc9.wto.org/system/files/documents/w10_1.pdf <https://www.google.com/url?q=https%3A%2F%2Fmc9.wto.org%2Fsystem%2Ffiles%2Fdocuments%2Fw10_1.pdf&sa=D&sntz=1&usg=AFQjCNH5Wfafd0_n4SkTRFhZFrC4Tu0KWQ>>). (Many of the Indian NGOs present at the site were diligently working towards and fervently hoping for the *collapse*. So they were quite bitter about the final outcome. And, reacted likewise.) "Negotiations on *agriculture, *(emphasis in original) more specifically on food-stock holding*,* presented the main action in Bali. There were two viewpoints on the price benchmark for the valuation of the volume of food stocks countries can legally hold. India's position was to use current prices, which would mean amending the agriculture agreement of the Uruguay Round <http://www.google.com/url?q=http%3A%2F%2Fwww.wto.org%2Fenglish%2Fthewto_e%2Fwhatis_e%2Ftif_e%2Ffact5_e.htm&sa=D&sntz=1&usg=AFQjCNHgxKQervU6yUTcmMhrV84GbBhlAQ> and would not be acceptable to other members. Alternatively, India proposed an interim arrangement until a more permanent solution is found. Here,* the United States proposed a 'sunset clause' of four years - a time-line that India did not accept* (emphasis added). A final deal was struck to have an interim mechanism <https://www.google.com/url?q=https%3A%2F%2Fmc9.wto.org%2Fsystem%2Ffiles%2Fdocuments%2Fw10_1.pdf&sa=D&sntz=1&usg=AFQjCNH5Wfafd0_n4SkTRFhZFrC4Tu0KWQ> until a permanent solution is found, *which means that more negotiation is still required to find a permanent solution* (emphasis added)." [Source: < http://www.odi.org.uk/opinion/8056-wto-bali-declaration-least-development-countries-trade-facilitation-agriculture-doha-round <http://www.google.com/url?q=http%3A%2F%2Fwww.odi.org.uk%2Fopinion%2F8056-wto-bali-declaration-least-development-countries-trade-facilitation-agriculture-doha-round&sa=D&sntz=1&usg=AFQjCNHP78qdS5MlA43jjDo46dbAbuTChw> >.] This time, Nirmala Sitharaman took off exactly from where Anand Sharma had left off. *The surprising, and frustrating for some, element is that she chose to do so instead of noiselessly giving in (by effectively accepting the sunset clause which had been rejected by Sharma)*. To be sure, right at the moment, a tussle is going on; and the contending parties are expected to bargain hard, as hard as possible. (The real disconcerting element is that, at the moment, India is, apparently, having too few backers - only Cuba, Venezuela and Bolivia, and none from the BRICS.) At the end of the day, they'll also have to have their own comparative cost-benefit analyses of the available options. Despite rhetorical flourishes and grave threatening postures, things do not yet appear to have reached anywhere near the final breaking point. II/III. http://www.ustr.gov/about-us/press-office/press-releases/2014/November/Statement-by-Ambassador-Froman-on-US-India-WTO-Trade-Facilitation-Agreement Statement by Ambassador Froman on U.S. - India WTO Trade Facilitation Agreement *Washington, D.C.* - U.S. Trade Representative Michael Froman released the following statement welcoming an agreement between the United States and India on elements aimed at unlocking progress at the World Trade Organization (WTO). The agreement announced today between the United States and India paves the way for full implementation of the WTO's Trade Facilitation Agreement (TFA), the first multilateral trade agreement to be concluded in the history of the WTO. The agreement also reflects shared understandings regarding the WTO's work on food security. *"A year ago at the WTO Ministerial Conference held in Bali, all WTO Members, including the United States and India, celebrated the achievement of the TFA and a broader package of measures addressing concerns of all WTO Members. ***Efforts to put the TFA in place were dealt a setback in July, when a small group of countries, led by India, raised concerns about the status of the WTO's work on food security issues and blocked consensus on implementing the TFA*** *[emphasis added]*. We have overcome that delay and now have agreement with India to move forward with full implementation."* *"With the WTO confronting a mounting crisis of confidence, President Obama and Prime Minister Modi held productive discussions on this issue, including during the Prime Minister's visit to Washington in September. In recent days, officials of both governments worked intensively and reached an agreement that should give new momentum to multilateral efforts at the WTO. In doing so, the United States and India reaffirm their joint commitment to the success and credibility of the WTO.* *"On the basis of this breakthrough with India, 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 Trade Facilitation Agreement."* *"This has been a good week for trade and the growth and jobs it supports here in the United States. The U.S. worked with China to achieve a breakthrough on the Information Technology Agreement, worked with India to move forward with the implementation of the Trade Facilitation Agreement, and worked with our TPP partners to bring the end of these landmark negotiations clearly into sight. 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."* III. - *U.S. and India Reach Understanding on Specific Food Security Programs* - 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*** [emphasis added]. It also sets out elements for an intensified program of work and negotiations to arrive at such a permanent solution. The TFA and the decision regarding food security programs were among a package of important trade agreements and other measures agreed at the WTO's 9th Ministerial Conference, held in Bali, Indonesia in December 2013. ***Conclusion of the "Bali Package" injected important confidence and momentum into the work of the WTO. That momentum was disrupted in July 2014, as a key deadline related to implementation of the TFA was missed due to linkages being drawn to other elements of the Bali Package. This bilateral agreement represents an important step towards restoring the momentum of Bali*** [emphasis added] and enabling a restoration of confidence in the WTO's negotiating function. As decision-making in the WTO is based on consensus among all Members, the elements agreed between the United States and India will now be discussed with the full WTO membership in the interest at arriving at final and simultaneously-agreed decisions in the very near future. [Source: < http://www.ustr.gov/about-us/press-office/fact-sheets/2014/November/US-India-Agreement-on-Trade-Facilitation >.] -- Peace Is Doable -- You received this message because you are subscribed to the Google Groups "Green Youth Movement" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send an email to [email protected]. Visit this group at http://groups.google.com/group/greenyouth. For more options, visit https://groups.google.com/d/optout.
