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India-US WTO Deal: Balancing Trade and Food Security | ||
India In a major breakthrough, India and the US have reached an agreement to resolve their differences over food subsidy, indicating an end to the WTO impasse and paving the way for implementation of the Trade Facilitation Agreement. ASSOCHAM applauds the efforts of the Government to secure the agreement with an indefinite ‘peace clause’, until a permanent agreement is reached. This will ensure that the country’s food security programme, which acts as a safety net for approximately 2/3rd of India's population will remain immune to WTO rules. ASSOCHAM believes that the agreement, once implemented, will provide remarkable benefits to India and the global economy.
ASSOCHAM feels that the trade facilitation measure will substantially reduce transaction cost for Indian exporters which range from 19-22% (as compared to 2-3% for exporters in the developed world). In order to fully actualize the benefits from trade facilitation, ASSOCHAM believes that efforts must focus on creating a ‘fostering environment’ for MSMEs, given that they contribute nearly 40% to India’s exports and account for 45% of manufacturing output. Sincerely, Rana Kapoor President, ASSOCHAM |
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