US rejects talks on public food stock holding issues at WTO meet, Prabhu meets US representative Lighthizer

Prabhu, according to media reports, discussed with Lighthizer the need to agree to a permanent solution on the public food stock holding issue.

Earlier, at the Conference, the US  refused to take any decision on the food subsidy issue thus derailing India's expectations of securing a better deal for its food security programme.

According to reports, US has said it will not offer any more relaxation on food security programmes as demanded by India and China along with others.

The US decision has also jeopardized the chances of finding a permanent solution for food security whose deadline is 2017 as per the Bali package.

India and US were also engaged in a debate at the ongoing ministerial meeting over India's developing country status, reports said.

In his meeting with Prabhu, Lighthizer is believed to have told the commerce minister that the US administration is against the WTO system and not against India per se, according to media reports.

"We need to clarify our understanding of development within the WTO. We cannot sustain a situation in which new rules can only apply to the few, and that others will be given a pass in the name of self-proclaimed development status. There is something wrong, in our view, when five of the six richest countries in the world presently claim developing country status," the media quoted Lighthizer as saying in his address at the plenary.

Suresh Prabhu held a number of bilateral meetings too on Tuesday in Buenos Aires.

He called on the President of Argentina, Mauricio Macri. The two leaders held discussion on a wide range of issues of bilateral cooperation.

The Minister also met the Minister of Economic Affairs, Education and Research of Switzerland, MJohann N. Schneider-Amman. The two ministers discussed issues related to bilateral relations and ongoing negotiations on the India-EFTA.

Prabhu met the Minister for Foreign Affairs of Argentina, Jorge Faurie where they discussed issues related to bilateral matters which encompass political, economic, scientific and technological cooperation.

The Minister for Commerce and Industry also participated in the Business Forum: Plenary Session on Trade and Agriculture: ‘Promoting Food Security’ during the WTO Ministerial Conference.

During the panel discussion, Prabhu emphasised on the issue of food and nutrition security for India’s population.

The Union Ministry of Commerce & Industry, on Tuesday, also published the 'Statement by India at the World Trade Organisation Ministerial Conference at Buenos Aires'.

Excerpts from the Statement:

"ndia has been participating in Ministerial Conference (MC)11 in good faith and in a spirit of constructive engagement. We have tried our best to engage with members in all formats. We have been proponents in several areas of work in the World Trade Organisation (WTO), including public stockholding for food security purposes, agricultural Special Safeguard Mechanism, agricultural domestic support and E-commerce. We are committed to preserving and promoting the WTO and the multilateral trading system with a view to take the agreed agenda of the WTO forward.

Leading up to the Ministerial and at the Ministerial itself, India’s coalition partners have remained steadfast in their support not only for a permanent solution on public stockholding but also on other issues of interest to developing countries. India was supported by over a 100 WTO member countries on all agriculture issues including our proposal to set the direction of agriculture reforms by first eliminating the most trade-distorting form of subsidies used mainly by the rich developed countries. The 53-member African Group as well as a large number of developing countries have rallied around and firmly supported us in opposing rules on E-commerce and bringing in new issues such as Investment Facilitation and MSMEs into the WTO’s agenda.

Today in the agriculture negotiations in Buenos Aires, a major country stated categorically that they cannot agree to any permanent solution on the public stockholding issue at MC11. This has posed a severe threat to a successful conclusion of the Conference as there was a Ministerial mandate for a permanent solution by MC11. India is surprised and deeply disappointed that despite an overwhelming majority of Members reiterating it, a major member country has reneged on a commitment made two years ago to deliver a solution of critical importance for addressing hunger in some of the poorest countries of the world. This has the potential to irreversibly damage the credibility of the WTO as a Ministerial Decision of all countries present in Nairobi has not been honoured.

India continues to participate in the efforts to draft a credible Ministerial Declaration. We are firm that any Ministerial Declaration must reaffirm the principles of the multilateral trading system, the completion of the Doha Development Agenda, the centrality of development and the availability of special and differential treatment and other concerns of developing countries."

Although many believe that with the US going back on a four-year-old commitment to offer a permanent solution for public stockholding, the outcome of the ongoing ministerial meet has become uncertain, others are of the opinion that ministerial host Argentina is determined for a decision and is insisting that 'failure isn't an option', according to media reports.

Experts are now debating if there can be a vote without the presence of the US, something which has never happened before in the WTO.

Image: WTO/Twitter