Ahead of a meeting on WTO Bali agreement, industry body FICCI has stated the pact will sharply lower transaction cost for exporters, thereby boosting their competitiveness. FICCI President Sidharth Birla has asserted that benefits from this WTO pact to Indian industry would be sizeable in the long term and would help improve enterprise in India and industry’s competitiveness in global markets.
Prime Minister Narendra Modi will finalise India's stand on Bali agreements, including ratification of the trade facilitation pact. However, sharp differences have emerged between rich economies like the US and Australia and emerging nations, including India and South Africa, on implementation of the Bali package. India has made it clear that it would not agree to the Trade Facilitation Agreement (TFA) unless there is a tangible and credible evidence of movement on arriving at a permanent solution on safeguards to run food security programmes of developing nations and a package for least developed countries (LDCs).
The developed countries including the US, the EU and Australia have heavily skewed in favour of trade facilitation instead of accepting the Bali package on food security programmes of developing nations. Earlier, at Bali Ministerial last December, India had agreed to the TFA, which binds members to improving border infrastructure for smoother movement of goods. The TFA is aimed at simplifying customs procedure, reducing transactions cost and increasing transparency and is being pushed by the developed countries as they seek to strengthen their sagging economies through an unrestrained global trade by way of a uniform and easy procedures at customs.