Failure to seal global trade deal could impact other negotiations: WTO

Mexico City: Failure to reach a global customs rules deal could have a “considerable impact” on other areas of global trade negotiation, World Trade Organization Director-General Roberto Azevedo said on Monday during a visit to Mexico.

Late last month, India torpedoed a deal to simplify, standardize and streamline the rules for shipping goods across borders, know as “trade facilitation”, after it demanded concessions on agricultural stockpiling.

“If we don’t find a solution for this issue, we could see a considerable impact on other areas of world negotiation,” Azevedo said in a speech in Mexico City, referring to WTO negotiations.

“I think that we have an opportunity in September to restart talks and see if a bridge is possible,” he added.

India insisted that, in exchange for signing the trade facilitation agreement, it must see more progress on a parallel pact giving it more freedom to subsidize and stockpile food grains than is allowed by WTO rules.

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India’s government said last week it believed it could convince other members that its need for more freedom on food subsidies was legitimate, and has said it could sign a deal as early as September if its concerns are addressed.

PTI