The negotiations for a new world trade deal got a major
boost today when India and the United States reached agreement on an
agricultural issue.
India was the holdout when all others seemed poised to sign
a deal last year that was hailed as a chance to give the global economy a
$1-trillion boost.
The deal aims to reduce customs and red tape.
It’s not clear whether the deal includes a long list of
other agreements reached during more than a decade of negotiations, agreements
such as giving WTO teeth to voluntary guidelines for food aid and on reducing
tariffs.
But the U.S. negotiators say the WTO deal is now ready to be
signed by member countries. It requires unanimous consent.
The issue for India was its ability to set a floor price for
grain crops raised by hundreds of millions of poor farmers and stockpiling when
it needed to buy crops to maintain the floor prices.
The stockpiles were either released to feed poor people or
exported. India is one of the world’s major grain exporters and there have been
complaints that it’s policies are not fair trade.
India and the U.S. did not announce details of their new deal, but
India had objected to a four-year limit on a so-called "peace clause"
that protected developing nations from being punished if they breached the
WTO's cap on food subsidies.
