The United States and India have reached an agreement that should help advance the much-delayed global trade negotiations known as the Doha round. It should clear the way for the 160 members of the World Trade Organization to simplify customs rules and procedures, making it easier for countries to trade with each other.
American and Indian officials did not publicly disclose the terms of the latest agreement. But they indicated that it gives trade negotiators more time to resolve a dispute about agricultural subsidies that had held up final approval of the customs deal at a W.T.O. meeting in July. We wrote an editorial criticizing the outcome of that meeting.
Last year, India greatly expanded its food subsidy program. Under that program, the country buys wheat and rice from farmers at above market prices, stockpiles the grains and later sells some of the food to the poor at subsidized prices. Officials in the rest of the world say the expansion of the program violates India’s commitments under existing trade agreements. They also argue that it could hurt farmers and consumers in the rest of the world by distorting the price of wheat and rice on the global market.
Indian officials had said they would not sign off on the customs deal until the United States and other countries agreed not to challenge its food subsidies through the W.T.O.’s dispute settlement process. On Thursday, Indian and American officials agreed to a peace clause that protects India’s program from a legal challenge until W.T.O. members reach a permanent resolution of the dispute. The director general of the W.T.O., Roberto Azevêdo, will now present a formal proposal for the peace clause to the W.T.O.’s general council, which is expected to consent.
While the Thursday deal represents progress, a lot of hard work lies ahead. The customs deal is just one, relatively modest part of the Doha round, which began in 2001 and has not resulted in a single finished agreement. Leaders in India, the United States, Europe, China and elsewhere will need to do a lot more if they ever hope to conclude the Doha round.