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U.S.-India agree on ag subsidies

It looks like a major roadblock to the WTO Trade Facilitation Agreement has been resolved. The United States and India have reached an agreement on how India stockpiles food for food security reasons.  India objected to a provision in the trade proposal which bars countries from exceeding farm subsidy caps for food security reasons.  A temporary exemption was offered but India insists it has a right to offer unlimited subsidies until a permanent solution was found to the dispute is found.

Under the agreement, the U.S. will not challenge food security programs under WTO dispute settlement procedures until a permanent solution has been agreed to and adopted.

The deal comes ahead of a G20 summit later this week. It will be taken up by the WTO General Council next month.

In a statement, the White House said the important breakthrough; “will unlock progress toward the full and immediate implementation of the WTO Trade Facilitation Agreement, which will lower the costs of trade for developed and developing countries alike.”