Amid sharpening differences between India and developed world on WTO issues, Union Cabinet headed by Prime Minister Narendra Modi will on Wednesday finalise New Delhi's stand on Bali agreements including ratification of the trade facilitation pact.
The Cabinet meeting comes close to the July 31 deadline for ratification on protocol of trade facilitation agreement (TFA).
India has vehemently opposed the process of implementation of the WTO's Bali agreements which include TFA, permanent solution on India's public stock holding of foodgrains for its food security programme and issues pertaining to least developed countries (LDCs).
The final protocol for the TFA, which is dear to the developed world including the US and Australia, was concluded by the WTO members but "no single meeting" has happened on India's food security related issues, a senior commerce ministry official had said.
"India do not trust the intentions of the developed countries. There are examples in the history for not trusting them. India's stand will now be decided by the cabinet. The Prime Minister will have to sit with the Cabinet and decide. we want single undertaking," the official said.The official added that the Cabinet would take a call whether to ratify the trade facilitation pact or not. The pact will be formally implemented in 2015.
The Cabinet meeting also assumes significance on the backdrop of the WTO's two-day General Council Meeting starting on Thursday which will discuss the Bali issues.The official said India insists on implementing the TFA only as a part of a single undertaking that includes a permanent solution on food security.
The current WTO norms limits 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 decades old and not at the current prices.In the recently concluded G20 trade ministers meeting in Sydney, Commerce and Industry Minister Nirmala Sitharaman has raised India's concerns over the slow progress in finding a permanent solution for its food subsidies.
The TFA, which aims at simplifying customs procedure, increasing transparency and reducing transactions cost, is being pushed by the 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.However, the official said these countries are completely avoiding discussions on issues related with public stock holding of cereals for India's food security programme.
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.India has asked the G20 to show leadership and address the genuine concerns of India and understands its sensibilities, the official said.
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