Skip to main content

India to say no to WTO trade facilitation deal


To seek speedy & immediate talks on public food stock holding issue

India is preparing to veto the World Trade Organization’s (WTO) trade facilitation agreement, in a stubborn effort to seek a negotiating space for public  stockholding in food grain and food subsidies.

If it does, it will be the only country in the entire WTO membership to stop the deal from getting implemented.

“The way things are moving, there is no way we can agree to the trade facilitation agreement being pushed by the developed nations at WTO within the prescribed  deadline. Food security has always been India’s main concern and this time we are not going to concede,” a topranking official involved in the negotiations, who did not wish to be named, told Business Standard.

The issue of public stockholding and food security has domestic compulsions here as the issue is largely political. And, for a new government that came to power after winning a landslide victory, the issue of livelihood of its poor and marginal farmers is a political trump card.

TFA has a deadline of July 31, when all the 160 WTO member countries have to sign the agreement into a protocol, marking implementation of the first phase of the deal. It will come into force fully from 2015. TFA seeks to streamline border procedures, making it easier for merchandise goods to cross international borders, with substantial reduction in red tape and bureaucracy. It has the potential to induce $1 trillion into the global economy.

The deal was struck in Bali, Indonesia, during the ninth WTO ministerial conference in December. At that time, it was decided that as an interim measure, in respect of public stockholding for food security, developing countries would be protected from WTO disputes for non-compliance with the relevant provisions of the Agreement on Agriculture. This protection would be available till a permanent solution, the deadline for which was 2017. But India wants the talks to happen immediately.

If the July 31 deadline is passed, there are high chances that the Doha Development Agenda, for which Bali was seen as an early harvest package, will lose its relevance. This will be so especially because America, the European Union, Japan and China are all engaged in clinching mega trade pacts — Transatlantic Trade and Investment Partnership and Trans-Pacific Partnership — with stiffer standards.

Recently, Commerce & Industry Minister Nirmala Sitharaman had categorically said in an interview with the Financial Times that the government did not want to wait until 2017 to start negotiations for a permanent solution and that it wanted “quick, substantive movement” on the issue. Soon after, Commerce Secretary Rajeev Kher issued a statement saying until India got an assurance that WTO members were ready to discuss a permanent solution on public stockholding, it would be difficult for it to sign the protocol on TFA.

“Till we have an assurance and visible outcomes which convince developing countries that members will engage in negotiations with commitment to find a permanent
solution on public stockholding and all other Bali deliverables, especially those for the LDCs, India will find it difficult to join the consensus on the protocol of amendment,” Kher was quoted as saying in a statement issued by the commerce & industry ministry.

The statement also refuted media reports, saying Kher had been misquoted as saying the government would not block the deal. WTO DirectorGeneral Roberto Azevêdo, had recently said in a speech: “Bali has created the opportunity to herald a new era in the WTO. But whether we take this opportunity is up to the members. It will be a question of political will.”

Business Standard New Delhi, 11th May 2017

Comments

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6

Jaitley plans to cut MSME tax rate to 25%

Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem

Don't forget to verify your income tax return in August: Here's the process

  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s