News-CRUX-10     19th July 2023        
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Context: The US, UK, EU and Japan have opposed extending the temporary peace clause agreed upon at the 2013 World Trade Organization (WTO) Bali conference.

Key Points

  • The US said India’s expansion of support to its rice and wheat farmers has negative spillover effects. India has invoked the clause thrice.
  • Developing countries’ food subsidies are protected by an interim peace clause which shields food procurement programmes against action from WTO members in case the subsidy ceilings - 10% of value of food production in the case of India and other developing countries - are breached.
  • The “Peace Clause” is the term used by trade negotiators to refer to Article 13 of the Agriculture Agreement of the World Trade Organization.
  • According to Article 13, a WTO member’s domestic support policies and export subsidies that are permitted by the terms of the Agreement on Agriculture cannot be objected to by other WTO members on the basis that they violate the terms of another WTO agreement.
  • It prevents legal action against any developing nation that breaches the food subsidy limits specified in the agreement on agriculture.
  • India , Indonesia, South Africa and China are among the 80 WTO member countries that have called for initiating text based negotiations to find a permanent solution on public stockholding (PSH) for food security.
  • Developing countries and the African Group have demanded a food security package at the 2024 conference.
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