As EU relents, fresh scope for solution on food security

A DECADE AFTER the World Trade Organsiation (WTO) brought in a "peace clause" on public stock-holding for food security, mainly at New Delhi's instance, prospects are looking brighter for a permanent solution for the vexed issue.

- MUKESH JAGOTA

According to sources, the European Union (EU) has agreed to consider India's demand for a permanent solution at the agriculture negotiations meeting in Geneva on Monday.

India has welcomed the EU's change of stance and urged WTO members to start text-based negotiations on the issue "as soon as possible, preferably at the senior official meeting scheduled in late October", they added.

The WTO ministerial meeting is slated to be held in Abu Dhabi in February 2024.

Expectations from the meeting have risen after the G20 Leaders' Summit in Delhi last month pledging to further multilateral efforts to liberalise world trade, reviving hopes of an end to years of impasse.

Of course, Brussels still insists that the "trade-distorting" aspect of the government interventions in the food market be addressed first.

India has invoked the 2013 Bali Peace Clause several times, and defended it saying it not only benefitted vulnerable farmers, but also bolstered global food security by keeping global prices in check and making food grains affordable for least developed countries.

UNDER THE PEACE clause, price support for farmers by a developing country in any year is protected, even if it is perceived as tradedistorting, if aggregate value of the product-specific support does not exceed a 10% threshold.