India and the US have temporarily resolved their disagreement regarding the Trade Facilitation Agreement (TFA) at the WTO. The US has consented to give India an indefinite 'peace clause' pending a permanent settlement of its food security problem.
Earlier, Prime Minister Narendra Modi had declined to sign the significant TFA because the time allotted to India to rationalise food subsidies was only till 2017. WTO members agreed not to challenge India for breaking WTO rules on stockpiling until 2017. Under the latest agreement, however, the US has clarified that it and others won't challenge India beyond 2017 if no solution is reached.
