Describing the agreement between India and US to resolve the contentious food security issue at the WTO as “breakthrough”, top American trade and business groups have applauded both the countries saying that, new development would boost global trade and economic growth.
“Businesses worldwide applaud the news that the US and India have overcome obstacles blocking the Trade Facilitation Agreement (TFA), and the broader Bali Package. This impasse had threatened the WTO’s standing as a credible forum for trade negotiations,” said US Chamber of Commerce president and CEO Thomas J Donohue.
The TFA, he said, holds great promise, particularly given disappointing economic growth in many parts of the globe.
“Streamlining the passage of goods across borders by cutting red tape and bureaucracy could boost the world economy by as much as USD1 trillion with most benefits going to developing countries,” he added.
India yesterday achieved a major victory with the US agreeing to its proposal on food security issues at WTO.
As per the agreement, the US will support India’s proposal at WTO that ‘peace clause’, crucial for uninterrupted implementation of India’s food security programme should continue indefinitely till a permanent solution is found.
“The US-India breakthrough on implementation of the World Trade Organisation Trade Facilitation Agreement (TFA) will boost global trade and economic growth,” said Information Technology Industry Council (ITI) president and CEO Dean Garfield as he and other groups applauded breakthroughs reached this week between India and the US.
“This will generate significant benefits for the tech industry, a sector heavily reliant on the free flow of parts and products across borders. The tech industry commends US Trade Representative Michael Froman and his team for their tireless work to advance this important multilateral initiative,” Garfield said.
In a statement, US-India Business Council (USIBC) applauded the cooperation between India and the United States that establishes a continued dialogue for the World Trade Organisation’s implementation of TFA.
MasterCard CEO Ajay Banga and chairman of US India Business Council said: “We commend the work of the Office of the US Trade Representative, Ambassador Michael Froman and the Government of India which will allow the WTO discussions to move forward as these two globally important economies work to further develop a deepened fiscal and commercial relationship.
“This agreement represents a way forward for both countries which will allow for the enactment of the TFA. It also sets the stage for increased economic activity in India and has the potential to add USD1 trillion to the global economy,” said USIBC (Acting) president Diane Farrell.
“While we are pleased that issues surrounding India’s stockpiling program will no longer keep the Bali Accord from moving forward, USIBC continues to encourage all WTO members to work together to find a permanent solution on food subsidies,” Farrell said.
The announced breakthrough in the WTO Trade Facilitation Agreement (TFA) is very welcome news to manufacturers that are seeking to grow opportunities through trade with overseas markets said National Association of Manufacturers Vice President of International Economic Affairs Linda Dempsey.
“The TFA represents an unparallelled opportunity to boost global growth and commerce by the simple task of cutting red tape, streamlining border processing and adding transparency to customs operations worldwide,” Dempsey said.