As per the latest trade agreement in Bali of WTO, India and other deve

As per the latest trade agreement in Bali of WTO, India and other developing and under developed countries can launch food security programmes :

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forever without any penalty under WTO rules

till an alternative mechanism is developed

for four calendar years

only if subsidy component under such programmes is less than 10 per cent

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This question was previously asked in

UPSC CAPF – 2014

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At the WTO Ministerial Conference in Bali in December 2013, an agreement was reached on public stockholding programs for food security. Developing countries like India faced challenges with exceeding the permitted levels of trade-distorting subsidies under existing WTO rules when procuring food grains at minimum support prices (MSPs) for public distribution. The Bali agreement included a “peace clause” which allowed developing countries to continue these programs without being challenged legally under WTO rules, even if they exceeded the agreed subsidy limits, *until a permanent solution is found and adopted*. This “until” clause is captured by option B.

– WTO Agreement: Bali Ministerial Conference, 2013.
– Issue: Public stockholding programs for food security in developing countries.
– Outcome: ‘Peace Clause’ allowing continuation of programs despite potential breaches of subsidy limits.
– Duration: Temporary initially, until a permanent solution is agreed upon (later made indefinite).

The peace clause required countries to notify the WTO about their stockholding programs and provide data on procurement, subsidies, and distribution. The search for a permanent solution to this issue continued after Bali. At the Nairobi Ministerial Conference in 2015, the peace clause was extended indefinitely, meaning countries can continue using the peace clause protection until a permanent solution is found. Option B accurately reflects the condition under which the programs were allowed to continue based on the Bali agreement and the subsequent understanding.

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