The issue was on Tuesday deliberated at the highest level at a meeting with Prime Minister Narendra Modi. The meeting to decide on India's stand was attended by Finance Minister Arun Jaitley and Commerce Minister Nirmala Sitharaman.

A formal decision on India's stand on the vexed WTO issue will be taken at the meeting of the Union Cabinet on Wednesday. The General Council of the 160-member WTO is meeting in Geneva on Thursday to adopt the trade facilitation deal and India's stand on the issue will be crucial. The global trade body will find it difficult to adopt the TFA without India's approval.
"India's stand is clear. It will not move forward on trade facilitation agreement (TFA) in absence of a concrete framework to find a permanent solution on public food stockpile which is necessary for the food security programme," sources said.

Sources said the developed countries will have to give a concrete framework to find a permanent solution for India's public stock holding issue and without that New Delhi will not adopt the TFA protocol.
Sharp differences have emerged between rich economies like the US and Australia and emerging nations, including India and South Africa, on implementation of the Bali package.
While the developed world is pressing for adoption of protocol on TFA, India is asking for finding a permanent solution for its food security programme.
India wants implementation of TFA only as a part of a single undertaking that includes a permanent solution on food security issue.
The current WTO norms limit the value of food subsidies at 10 percent 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 the most prevalent among a group of developing nations angry at rich countries for failing to address their concerns about a deal on trade facilitation - struck by WTO member states in Bali last year - that must be detailed by a July 31 deadline.

-Proponents believe the deal could add USD 1 trillion to global GDP and 21 million jobs.

-But India’s Trade Ministry said  that it would “find it difficult" to support the protocol unless it was satisfied that adequate emphasis is being placed on negotiations about food security and other issues important to poor countries -sparking furious negotiations at the G20 Trade Ministers meeting in Sydney.

India is asking for change in the base year (1986) for calculating the food subsidies. The US gives about USD 120 billion as agriculture subsidy as compared to India's USD 12 billion.
The final protocol for the TFA, which is dear to the developed world including US and Australia, was concluded by the WTO members but no single meeting has happened on India's food security related issues.
"Developed world is talking about the deadline of adoption of TFA, which is July 31. Issues are important and not the deadlines," they added.
The TFA will be formally implemented in 2015. The TFA, which aims at simplifying customs procedure, increasing transparency and reducing transactions cost, is being pushed by US and other developed nations as they seek to bolster their sagging economies through an unhindered international trade by way of a uniform and easy procedures at customs.

WTO Bali agreement to sharply lower transaction cost: Ficci

Industry body Ficci has said that the pact will sharply lower transaction cost for exporters, thereby boosting their competitiveness.

"We certainly feel that through this agreement, we will be able to see a significant reduction in the transaction cost involved in trading across borders. This is good for both trade and enterprise in India and we expect the government to take a considered view on signing of this agreement,” Ficci said ahead of the meeting.

"The benefits that would accrue to Indian industry in the long term following this agreement would be sizeable and would help improve competitiveness of our exports," Ficci President Sidharth Birla said.

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