The US, UK, EU, and Japan have expressed their opposition to extending the temporary peace clause that was established during the 2013 World Trade Organization (WTO) Bali conference. This clause prevents any legal action from being taken against developing nations that exceed the specified food subsidy limits outlined in the agreement on agriculture.
During an agriculture negotiation meeting at the WTO on Monday, the US raised concerns over India’s expansion of support for its rice and wheat farmers, citing negative spillover effects. India has already utilized the clause on three occasions.
In response to the criticism, India justified its actions by pointing out that public stockholding was crucial during the pandemic. The country mobilized its food stocks and provided food to 80 million people over a period of 18 months, reinforcing the necessity of the policy.
Public stockholding is a policy tool used by governments to purchase, stockpile, and distribute food as needed.
Under the interim peace clause, developing countries’ food subsidies are protected, shielding their food procurement programs from any action by other WTO members in case the subsidy ceilings are breached. For instance, India’s subsidy ceiling is set at 10% of the value of food production.
India, along with Indonesia, South Africa, and China, is among the 80 WTO member countries advocating for text-based negotiations to establish a permanent solution for public stockholding (PSH) in relation to food security. They have jointly proposed the idea of a food security package to be discussed at the 2024 conference.
It’s worth noting that this joint proposal represents a substantial portion of the world’s population, including 6.6 billion people and more than 80% of the global population.