India susceptible to trade disputes without permanent solution for food security
India susceptible to trade disputes without permanent solution for food security
Current Affairs Daily Articles & Editorials
La Excellence IAS Academy | February 14, 2024 | Economy
Syllabus: GS-III
Subject: Economy
Topic: Food security.
Tags: #Foodsecurity #Tradedisputes.
Issue: Food Security.
Context: India may face potential trade disputes at WTO without permanent solution for food security, according to the discussions ahead of 13th ministerial conference (of WTO) in Abu Dhabi.
Concerns:
- Uncertainty around ‘peace clause’ provisions prompts push for clearer guidelines.
- India invoked ‘peace clause’ due to rice subsidy.
- There is pressure to reduce support by 50% by 2030.
- Developing countries seek permanent solution to avoid disputes, ensure trade compliance.
Prelims connect
| World Trade Organisation (WTO): Peace Clause.
· Protects food procurement programs of developing countries from WTO actions if subsidy limits are surpassed. · Aims to prevent disruption of global trade caused by high subsidies. India’s Invocation of Peace Clause: · In 2020, India informed WTO of $5 billion subsidies for rice production, exceeding the threshold. · Invoked Peace Clause to shield against WTO actions regarding the breach. India’s Justification for Breaching Subsidy Limits: · Restricted rice exports to stabilize global markets, preventing distortion. · Maintained ample food reserves to address production fluctuations and respond to emergencies. |
Source: Indian Express
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