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LATEST NEWS UPDATES | BJP red flags 'peace clause' ahead of WTO's Bali meeting -Ravish Tewari

BJP red flags 'peace clause' ahead of WTO's Bali meeting -Ravish Tewari

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published Published on Nov 27, 2013   modified Modified on Nov 27, 2013
-The Indian Express


Barely days ahead of WTO's ministerial meeting at Bali next week, the BJP on Wednesday red flagged government's likely move to agree to a 'peace clause' to shield food guarantee law from the restrictions under the WTO at least for a period of four years. "The peace clause in its current form is not in our interest," Leader of Opposition in Rajya Sabha Arun Jaitley said on Wednesday.

Earlier, senior party leader and BJP Rajya Sabha member Shanta Kumar, who chairs the parliamentary standing committee on Commerce, had also written to Prime Minister Manmohan Singh requesting him to postpone any decision to commit India for a 'peace clause' at Bali (Indonesia).

"I have written to the Prime Minister requesting him to postpone a decision on the peace clause. Our standing committee would like to examine the implications of the proposed peace clause for India," Shanta Kumar told The Indian Express.

The 'peace clause' is a formulation proposed by India and a group of developing and least developed country group (called G-33) during the negotiations on this subject at Geneva to shield their public food grain procurement and later subsidised distribution to their population from running foul of the WTO agreement on agriculture that seeks to limit total food subsidy at 10 per cent to total agricultural output of the country.

In this backdrop, Jaitley contended that the 10 per cent ceiling of food subsidy is bound to be breached by India given the generous provisions of the National Food Security Act and the rising trend in the minimum support price of foodgrains and consequently apprehended that the 'peace clause', which will be valid only for four years, will cripple the food guarantees in the country.

"This peace clause seeks to provide only a semblance of protection for a period of four years. Our food security programmes would still be exposed during this period to punitive action under the Agreement for Subsidies and Countervailing measures. This may force India to substantially limit the food security programme immediately. The much-hyped food security for Indians would eventually come to a naught in just 4 years if this peace clause is acceded to," Jaitley had reasoned suggesting the need to "comprehensively protect these subsidies on a permanent basis" if the Congress-led UPA was "sincere and meaningful food security for Indians".

The Leader of Opposition in Rajya Sabha, in this context, has suggested the government to extract a "Food Security" exemption from the WTO to permanently protect the food guarantees in the country. "We can not compromise on the livelihood of millions of subsistence farmers in India. We can not accept any limitations on our food security programme. India should persist with its demand for a "Food Security" Box which would protect on a permanent basis the price support to farmers (MSPs) and food subsidy to millions of vulnerable Indians," Jaitley suggested.

The government is still trying to forge a consensus on this issue. Sources said that the mandate for WTO negotiations at Bali was slated to be discussed at the Cabinet meeting earlier this week, but the issue could not be taken up for absence of some senior ministers. With Parliament slated to start from next week, the issue may also generate political heat depending upon India's position at Bali.


The Indian Express, 27 November, 2013, http://www.indianexpress.com/news/bjp-red-flags-peace-clause-ahead-of-wtos-bali-meeting/1200176/0


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