December 6, 2013
BALI: It's turned into an India versus US face-off at WTO with hectic negotiations between the world's two largest democracies going well past midnight amid speculation that the developed countries have offered a solution, which was unacceptable to the government.
December 6, 2013
BALI: It's turned into an India versus US face-off at WTO with hectic negotiations between the world's two largest democracies going well past midnight amid speculation that the developed countries have offered a solution, which was unacceptable to the government.
An Indian official said Sharma (left) spent 90 minutes with Azevedo (right) and Wirjawan, urging that a solution should be found to break the impasse that is also holding up a deal on trade facilitation.
While Thursday started with commerce and industry minister Anand Sharma's assertion that "no agreement is better than a bad agreement", by evening he was called for a fourth session with WTO boss Roberto Azevedo and Indonesian Trade Minister Gita Wirjawan in less than 24 hours, where certain options were offered. But, the options were well below India's expectation as sources suggested that what was on offer was "endeavor" to find a solution compared to India's demand to put in place a "peace clause" till a permanent solution is found.
Under the interim solution, or the peace clause for four years, no country will challenge another at the WTO if there was a breach of the 10% cap on domestic support given through minimum support prices. But, India rejected the four-year peace clause offer.
An Indian official said Sharma spent 90 minutes with Azevedo and Wirjawan, urging that a solution should be found to break the impasse that is also holding up a deal on trade facilitation, which will ease controls of goods at ports and airports and, according to WTO estimates, provide a $1 trillion stimulus to the global economy. Sharma is learnt to have to told the duo that he first wanted to talk about food security before discussing anything else and the meeting ended on that note.
Just when Sharma returned to the hotel, and was wrapping up dinner, he was called back for another meeting with the WTO boss, the Indonesian trade minister, and US trade representative Michael Froman. The meeting started a little after 11 PM (around 20.30 hrs IST ) and lasted for one hour and 40 minutes. Another round is expected later.
Before the three trade ministers and Azevedo went into a huddle, Wirjawan and the WTO chief spent the day discussing possible solutions with developed countries led by the US that has held firm on the trade facilitation agreement, even threatening that it will not be interested in it after the Bali meeting.
This familiar confrontation with the US at such large conferences has a different color this time as India does not have the support of some of its largest allies such as China, which were in the same boat during the climate change talks.
For the government, settling below the benchmark it has set for itself is going to be difficult, given the tough talk over the past few days and the pitch on the National Food Security law.
Courtesy: TNN
