The World Trade Organisation remained deadlocked Monday, two months after failing to seal a key deal on a global customs pact. Officials said that the United States blocked efforts by the WTO''s trade facilitation committee because of continued wrangling with India. At a meeting of the committee - which seeks to make customs procedures faster and more efficient - New Delhi refused to soften its position.
A draft of the so-called Trade Facilitation Agreement was agreed at the WTO''s Bali conference in December last year and was meant to be finalised at the end of July. But sparring between members, notably over demands from India that the world body gives the green light to the developing power''s stockpiling of food, have put the long-sought deal on ice.
While India and its supporters say such stockpiling is essential to ensure poor farmers and consumers survive in the cut-throat world of business, Western critics fear this food could be syphoned onto global markets, skewing trade. The 160 economies which make up the WTO set trade rules among themselves in an attempt to ensure a level playing field and spur growth by opening markets and removing trade barriers, including subsidies, excessive taxes and regulations. But they have failed repeatedly to conclude the Doha Round of trade liberalisation talks, which were launched in 2001 with the stated aim of underpinning development in poorer nations.
All members have to agree to proposals under WTO rules, meaning that a single country can block any changes. New Delhi has demanded that the food issue be settled earlier than the 2017 deadline set at the Bali conference. But Western countries have insisted that the trade facilitation deal must move in lockstep with other parts of the Doha deal on agricultural and industrial goods.
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