India will secure and protect right to food security at WTO: Sharma

Ahead of next week's WTO meet in Bali, Commerce Minister Anand Sharma asserted that India will secure and protect its right to food security and strive for a permanent immunity from any kind of farm subsidy breach.

He also said that India will remain positively engaged with the other WTO members on farm subsidy and other issues, including Trade Facilitation Agreement (TFA).

The TFA is aimed at making international trade much easier by simplifying and streamlining custom procedures across the globe. The pact is billed to bring in gains worth $1 trillion for global trade.

There are fears that India's food security programme would breach the subsidy cap of 10 per cent under the WTO's Agreement on Agriculture. Developed countries have proposed an interim solution of four-year 'peace clause' during which period India would not attract penalty even if the 10 per cent cap is broken.

The Bali Ministerial of the World Trade Organisation (WTO) is schedule for December 3-6.

Sharma also said the government will not reduce foreign direct investment cap in the existing pharmaceutical companies. Currently, 100 per cent FDI is permitted in brownfield pharma firms through clearance from the Foreign Investment Promotion Board (FIPB).

He said, however, that the non-compete clause which prevents the acquired entity from producing similar products by the acquirer would be done away with. Sources told PTI that many of the other proposed conditions, aimed at tightening of the FDI policy, were rejected in Thursday's meeting.