The 160-member World Trade Organization (WTO) wrote history last week when its General Council approved its first major global trade deal since its inception nearly two decades ago. The >WTO got into a logjam when New Delhi put its foot down, and refused to sign the trade facilitation agreement unless a solution was found to the food stockpiling issue. The resultant impasse had even put a question mark over the very future of the WTO. Sensing the disastrous consequences of a WTO failure, Washington swiftly went into a >bilateral huddle with India . Once the two sides agreed on a solution to the contentious issue, the decks were cleared for the WTO to ink its maiden trade agreement. Quarantining the public food stockpiling issue has ensured that the members’ commitment for a multilateral trading system remains intact. India and others felt that the Bali agreement put at risk their food security policies. The WTO General Council has now agreed to keep the negotiations for a permanent solution on public stockholding for security consideration independent of the outcomes on talks on other issues. It has also decided to let the peace clause, agreed in Bali, to remain in force until a permanent solution is found. The agreement clearly addresses India’s concerns. The WTO has set for itself an accelerated time frame of December 2015 to arrive at a lasting solution to the issue. A stricter deadline reflects a sense of seriousness in not letting the issue linger indefinitely. In a way, it also assures the developed world that its concerns over the trade-distorting food subsidies remain a priority focus. With the General Council adopting the Protocol of Amendment, the process of implementation of the Trade Facilitation Agreement has finally begun. Essentially, it is aimed at modernising the trade infrastructure and easing regulations to smoothen global trade.
Since the Doha Round, the WTO has been struggling to be relevant in the midst of diverse interest blocs. It is hoping to shore up its image with the less-ambitious but procedurally significant trade facilitation agreement. The public stockholding issue almost spoiled the party for the WTO but now there is no need to redo Bali. Significantly, the WTO General Council has also given itself a deadline of July 2015 to agree on a work programme to implement the Bali Ministerial Decisions. If it reveals a prudential compromise, the historic deal also underscores the acute anxiety among members to work towards strengthening the >multilateral trading system . Surely, the deal must spur member-nations to discover ways and means to deliver fast on the Bali decisions. The moot question, however, is: will the deal embolden the WTO attempt liberalising the more sensitive areas of trade as was intended by the Doha Round?
