India is discussing with the US details of an indefinite peace clause on food security and may finally sign the World Trade Organisation's (WTO) Trade Facilitation Agreement (TFA), a think-tank here said Monday, ahead of the G20 summit in Australia.
"As part of a revised proposal, India and the US are reported to be discussing the details of an indefinite peace clause on food security until a permanent solution is found," the study paper titled 'The G20: Challenges and Opportunities Ahead' by the Australia India Institute (AII) said.
Under the peace clause, a WTO member gets immunity against penalty for breaching the food subsidy cap. As per WTO rules, a developing nation can provide food subsidy of up to 10 percent of the total farm output.
"Though the legal texts and technical parameters including rules are still to be finalised, the meeting succeeded in addressing the core concerns of emerging and developing countries on maintaining public stockpiles of food grains for sale to poorer citizens at subsidised prices beyond permissible subsidy limits, in anticipation of a permanent solution," the report added.
India has asked for a permanent solution to the issue of public stockholding for food security purposes and not a restricted period of four years as was originally decided during the WTO ministerial meeting in Bali, Indonesia, last year.
"A peace clause would give legal security to member countries and protect them from challenges under other WTO agreements," the paper said.
Last week, Finance Minister Arun Jaitley had said at a conference in New Delhi that with the peace clause due to disappear in four years' time, India wanted that "the decision on settlement of disputes and the peace clause should co-exist".
A crucial meeting of the WTO in Geneva in July to simplify the procedures of global commerce had failed to reach a conclusion, with India demanding as a quid pro quo some concessions for itself and other developing nations on food subsidy.
"Some obstacles remain. India is trying to stall implementation of the WTO's Trade Facilitation Agreement (TFA), agreed to in Bali and has tied ratification of the agreement to a permanent solution to the contentious issue of public stockpiling of food grains," AAI said.
"Please extend the peace clause and let it coexist until such a time that you do not get us a permanent solution. Do not make us wait till 2017. These are legitimate demands," Commerce Minister Nirmala Sitharaman said on the matter Sunday at a conference in the Indian capital.
