India has not been blamed for the breakdown of talks at the Ministerial
meeting of the World Trade Orgaisation for the first time Commerce Minister
Suresh Prabhu said.
We came here with an open mind” but things did not move because of the
adamant attitude of some members, Prabhu told reporters here without mentioning
the role of United States which was responsible for the breakdown of talks
The talks at the 11th ministerial conference of the WTO collapsed with the
US going back on the commitment made by it along with other member countries to
find a permanent solution to the public food stockpile issue.
Following the breakdown of talks, there was no ministerial declaration at
the end of the conference, though chair and Argentinean minister Susana
Malcorra made a statement highlighting the developments.
“This is (for the) first time that India is not being blamed...we are
definitely not going back as villains,” Prabhu said, adding the country has not
lost anything but gained a lot, especially in terms of the goodwill of the
At previous ministerial meetings, India was often blamed for adopting an
uncompromising and stern attitude which thwarted attempts of member nations to
reach consensus on key issues.
The minister said that during the course of the 11th ministerial
conference, he had over two dozen bilateral meetings during which he explained
the position of India as well the developing nations on different issues.
Stating that trade negotiations are always difficult, the minister said “we
knew that nothing was going to happen because of the way the US administrating
was moving... questioning the efficiency of the global trading system.”
As regards the food security issue, the minister said that India was keen
to have a permanent solution which ought to have been better than the ‘Peace
Clause’ and led the battle for it. However, talks reached a dead end after
Assistant US Trade Representative Sharon Bomer Lauritsen in a small group
meeting said that permanent solution to the food stockholding issue was not
acceptable to America.
Under the global trade norms, a WTO member country’s food subsidy bill
should not breach the limit of 10 per cent of the value of production based on
the reference price of 1986-88. Apprehending that full implementation of food
security programme may result in breach of the WTO cap, India has been seeking
amendments in the formula to calculate the food subsidy cap.
As an interim measure, the WTO members at the Bali ministerial meeting in
December 2013 had agreed to put in place a mechanism popularly called the Peace
Clause and had committed to negotiate an agreement for permanent solution at
the 11th ministerial meeting at Buenos Aires. However, as no agreement was
reached at the ministerial meeting at Buneo Aires, Peace Clause will continue
and also the existing mandate to find a permanent solution.
During the ministerial, Prabhu said, India continued to press for reduction
of farm subsidies by the developed countries and resisted inclusion of new
issues on the negotiating table lest it should dilute the commitment to
complete the existing agenda. There is life after Buenos Aires and the WTO will
continue to thrive as a transparent multilateral trading organisation for the
good of the world, the minister maintained.
Prabhu said India will call a meeting of some WTO members in February to
muster support for food security and other issues. It would be like a
mini-ministerial meeting, Mr Prabhu said. The aim was to bring like-minded
nations together and explain to them the country’s position as well as concerns
over issues of common interest.