What you need to know about the India-US agreement at the WTO

 

Just ahead of the G-20 Leaders’ Summit in Brisbane, Australia (November 15-16, 2014), India and the United States announced a breakthrough in their trade negotiations impasse over agriculture. That fight had brought trade negotiations to a crashing standstill in July after the few months of tentative optimism among negotiators that followed the eleventh-hour agreement in at the Bali Ministerial Conference in December 2013. Confidence in the multilateral rules-based trading system had reached an all-time low, and while the response was muted (an agreement between two WTO members is not the same as an agreement among all), the media coverage made it clear the news of the U.S.-India agreement was very welcome in trade circles.

Should the rest of the world share this excitement? The discussion underlying the fight between India and the United States has important implications for countries’ ability to set policy to promote food security and control their food systems—and the role the WTO and the multilateral system should play in that effort.

The India-US agreement means the 2013 Bali WTO Ministerial Conference will likely have an outcome after all: the Trade Facilitation Agreement1 is now widely expected to go ahead. India had been refusing to sign the agreement unless there was “substantive movement” on the Bali decision to revise the rules governing food security stocks within the WTO Agreement on Agriculture. In the agreement, the U.S. has agreed it will not challenge India’s spending on food stocks until the negotiations at the WTO on stocks are concluded, granting India what is called an indefinite peace clause for its programs.

Find out what you need to know here.

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