Tuesday, 5 August 2014

India's request for amendments in TFA




There is nothing wrong in India’s demand for, “permanent peace clause until a final  understanding on subsidy is reached” because, India’s  concern about the  financial  burden on the government  and plight of the poor if the present agreement is signed in it’s present form  is genuine . More over, India’s  badly designed grain procurement and distribution programme  is no reason to agree to the use of an outdated benchmark price to calculate the nation’s food subsidy. India can perfect the procurement system in course of time .It is true that,  it is a tough task  to convince 160 member countries of WTO about  the amendments India wants in  TFA , since it would involve drastic changes   in the WTO procedures and parliamentary approvals in the WTO  nations . But , it is also true that  India’s insistence   upon change in the method of calculating the legally permissible subsidy. It cannot be based on prices that prevailed in 1986-88. When India stand isolated in this matter , PM  Modi can make use of his visit to USA  to convince president Obama about the compelling reasons for seeking   amendments  in TFA .If  he succeeds in that attempt, half the struggle in convincing WTO members is won.

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