
Know what is WTO's Trade Facilitation Agreement and why India is opposing it

Before
jumping
to
conclusion
about
whether
India
is
doing
right
by
opposing
the
TFA
agreement
or
not,
we
should
look
at
these
issues
first.
What
is
TFA
and
controversy
surrounding
it?
•
Trade
facilitation
agreement
(TFA)
is
a
trade
protocol
aiming
to
give
a
spur
and
do
away
with
the
stumbling
blocks
in
doing
international
trade
between
various
countries.
•
The
deadline
to
sign
the
agreement
is
July
31
and
the
deal
has
to
come
into
force
fully
by
2015.
•
It
is
being
believed,
especially
by
the
proponents
of
the
agreement
that
deal
could
add
$1
trillion
to
global
GDP
and
also
can
generate
21
million
jobs
by
slashing
red
tape
and
streamlining
customs.
•
The
developing
country
especially
India
and
South
Africa
wants
that
before
pushing
for
this
TFA
thing
why
WTO
don't
discuss
and
allay
our
concern
on
food
subsidy
which
is
a
lifeline
for
lakhs
of
BPL
people
in
these
countries.
What
was
agreed
upon
in
Bali
summit?
•
Last
year
in
Indonesia,
during
Ninth
Ministerial
Conference,
largely
three
issues
were
taken
into
account.
•
They
were
Package
for
Least
Development
Countries
(LCDs),
Trade
facilitation
and
agriculture.
•
In
the
meeting,
the
160-member
WTO
had
reaffirmed
their
commitment
for
duty
free
and
quota
free
market
access
for
LCDs.
Reactions
on
the
issue:
•
Michael
Froman,
US
trade
representative
told
Reuter,
"India
clearly
and
forcefully
expressed
its
concern
that
work
proceeds
on
all
fronts,
including
food
stockpiling,
and
received
assurances
that
all
G20
members
are
committed
to
the
full
implementation
of
all
Bali
agreements
on
the
agreed
timetables".
•
"India
is
quite
influential,
so
let's
hope
that
they're
going
to
back
down
in
some
way,"
Peter
Gallagher,
an
expert
on
free
trade
told
Reuters.
•
When
asked
about
the
issue,
an
Indian
official
told
Business
Standard,
"The
way
things
are
moving,
there
is
no
way
we
can
agree
to
the
trade
facilitation
agreement
being
pushed
by
the
developed
nations
at
WTO
within
the
prescribed
deadline.
Food
security
has
always
been
India's
main
concern
and
this
time
we
are
not
going
to
concede".
•
According
to
the
Indian
Express
report,
Commerce
secretary
Rajeev
Kher
through
a
statement
said
that
it
will
be
really
difficult
for
India
to
sign
the
TFA
till
WTO
members
are
ready
to
discuss
a
permanent
solution
of
food
subsidies
and
stockpiling
of
food
grains.
India's
concern
•
India
is
maintaining
its
bullheaded
approach
because
of
two
issues,
food
subsidies
and
stockpiling
of
food
grains.
•
India
at
present
is
running
a
massive
food
procurement
programmes
by
providing
minimum
supporting
price
to
the
farmers
and
giving
subsidised
food
to
lakhs
of
BPL
families
through
its
public
distribution
system
(PDS).
•
The
new
WTO
agreement
limits
the
value
of
food
subsidies
at
10
percent
of
the
total
food
grain
production.
India
is
flexing
muscle
on
the
issue
because
subsidies
have
been
calculated
by
WTO
taking
1986
as
base
year
into
account
which
will
largely
affect
food
procurement
programme
through
MSP.
•
India
is
raising
its
concerns
by
saying
that
while
US
is
providing
120
billion
as
agriculture
subsidy
then
why
India
can't
give
even
one
tenth
(USD
12
billion)
to
their
farmers.
•
India
which
is
home
to
about
25
percent
of
the
world's
hungry,
has
a
viewpoint
that
it
is
a
Government's
responsibility
and
duty
to
ensure
availability
of
proper
food
to
its
people.
•
Moreover,
India's
food
programme
is
largely
domestic
so
it
doesn't
distort
global
food
trade.
The
Indian
sources
say
that
once
the
TFA
will
be
implemented
it
will
be
difficult
to
bargain
on
the
food
subsidy
thing
and
that
is
why
India
has
this
brazen
attitude.
What
is
India's
strategy?
•
India
wants
that
its
concerns
on
food
security
issues
must
be
addressed
by
adopting
some
concrete
framework
in
the
direction.
•
India
might
delay
on
the
signing
of
the
agreement
and
buy
out
time
till
December
of
this
year.