There are members of the WTO as at 1 Junewith developing countries accounting for more than two-thirds of the membership. The WTO sets global rules for trade and provides a forum for trade negotiations and resolving trade disputes between member countries. WTO members as a whole make all major decisions, usually by consensus.
But India has been blocking implementation of that agreement. It wanted assurances that its food security programme would not be challenged under the WTO's rules.
India's concern was that complaints based on rules limiting farm subsidies might undermine its spending on food stockpiles intended to ensure that the poor have enough to eat.
Food security programmes are covered by a so-called "peace clause" in which countries agreed to refrain from making such challenges until The US has now agreed to extend that commitment, in effect indefinitely.
This bilateral agreement between the US and India still has to be endorsed by the full WTO membership, and it's likely to be discussed in the Organization's General Council next month.
So India's decision to hold out was strongly criticised. Some even saw it as the beginning of the end of the WTO.
As part of this, India buys grains such as rice and wheat from farmers at above market prices, sells a part of it to poor households and stockpiles the rest to guard against shortages. It does this to both protect farmers, but also provide affordable food to many.
Stockpile deadlock India's Commerce Minister Nirmala Sitharaman took to social media to share the latest developments, where she tweeted that India and the US "had successfully resolved their impasse over food securities in WTO".
The minister added later: But it involves subsidies for farmers, which can distort international trade and are subject to WTO disciplines. Western countries, led by the United States, have previously raised concerns that the stockpiles could affect global markets and skew trade.
He explains, "getting the US and WTO to concede on food stockpiling helps define the prime minister as a firm leader, who is able to make progress while protecting India's vital interests.
Mr Biswas adds, "it is also a positive outcome for the WTO as it will pave the way for a very significant WTO trade liberalization agreement to be implemented at a time when some critics were beginning to question the future role of the WTO.
Progress on that, and most other areas of the wide ranging WTO talks known as the Doha Round launched inhas been slow. The TFA was the one major achievement from those extremely protracted negotiations.The Doha Round of WTO negotiations—formally, the Doha Development Agenda—was launched in November The work program covered about 20 areas of trade, including agriculture, services trade.
Roberto Azevedo, the director general of the World Trade Organization (WTO), is enjoying the moment. Outside, in front of the neo-classical Centre William Rappard, the headquarters of the WTO. Functions of WTO in India To provide facilities for implementation, administration and operation of multilateral and bilateral agreements of the world trade.
To provide a platform to member countries to decide future strategies related to trade and tariff. GATT/WTO, Inward foreign direct investments, nature of exports from India, and outward foreign direct investments. The study reveals that globalization with reference to India .
India is a founder member of the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO), which came into effect on 1 January after the conclusion of the Uruguay Round (UR) of Multilateral Trade Negotiations.
“India is deeply concerned at the WTO secretariat becoming a party to the recent report by international organisations on WTO reforms,” India told the WTO on Tuesday. Emphasising that the issue of institutional reform of the WTO is important, India said the issue was best resolved by members.