Breakthrough in Indo-US row over key WTO pact

NEW DELHI, Nov 13 (BSS/AFP): India and the United States said on Thursday they resolved a row over food subsidies that has been blocking a landmark global trade agreement.

India refused to endorse the Trade Facilitation Agreement (TFA) in July unless its food stockpiles were exempted from possible punitive measures, prompting the US to accuse it of taking the World Trade Organisation "to the brink of crisis".

But on Thursday both sides agreed India's food security programmes would not be challenged under WTO rules "until a permanent solution regarding this issue has been agreed and adopted", a US government statement said.

The White House said the deal would "unlock progress toward the full and immediate implementation of the WTO Trade Facilitation Agreement, which will lower the costs of trade for developed and developing countries".

India said it was "extremely happy that India and the US have successfully resolved their differences relating to the issue of public stockholding for food security purposes".