U.S. Trade Representative Michael Froman has announced a significant agreement between the United States and India concerning the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA). This agreement is expected to advance the implementation of the TFA, marking it as the first multilateral trade agreement concluded in WTO history. The understanding also addresses food security concerns within the WTO framework.
Froman stated, "A year ago at the WTO Ministerial Conference held in Bali, all WTO Members, including the United States and India, celebrated the achievement of the TFA and a broader package of measures addressing concerns of all WTO Members." He noted that efforts were hindered in July when India led a group raising issues about food security, blocking consensus on implementing the TFA. However, this delay has been resolved with India's cooperation to proceed with full implementation.
The resolution follows discussions between President Obama and Prime Minister Modi during Modi's visit to Washington in September. Recent intensive negotiations by officials from both governments have resulted in an agreement that aims to revitalize multilateral efforts at the WTO. Froman remarked that this collaboration reaffirms both nations' commitment to strengthening the credibility and success of the WTO.
Froman expressed optimism about working with all WTO members and Director-General Roberto Azevedo for consensus on fully implementing all elements of what is known as the Bali Package, which includes the TFA.
He further highlighted recent achievements in trade agreements: "This has been a good week for trade and growth and jobs it supports here in the United States." The U.S. reached breakthroughs not only with India but also with China on the Information Technology Agreement and made progress with Trans-Pacific Partnership partners. These developments are anticipated to significantly bolster global trading systems amid ongoing economic recovery efforts ahead of an upcoming G-20 Summit.