WTO: According to Finance Minister Nirmala Sitharaman, WTO Director-General Ngozi Okonjo-Iweala is looking into resolving WTO rules that make it difficult for India to export agricultural grains to fulfill shortages in other countries caused by the Russia-Ukraine war. WTO laws governing the export of food by a country that had already procured food on a Minimum Support Price basis were among the challenges, according to the Minister.
Ms. Sitharaman informed reporters on Friday, April 22, 2022, the final full day of her visit to Washington, DC for the World Bank/International Monetary Fund (IMF) Spring Meetings, that “countries like India, which can possibly supply [food grains], are encountering difficulty with WTO.”
WTO was “looking at food export difficulties constructively
According to the Finance Minister, who expressed optimism that the matter could be handled, Ms. Okonjo-Iweala remarked during the IMF Plenary meeting on Thursday that the WTO was “looking at it [food export difficulties] constructively.”
“These are the kinds of opportunities that we’re carving out of a difficult circumstance,” she added, noting that the conflict has presented India with both challenges and opportunities, such as dealing with the global rise in commodities prices. The export of food grains, such as wheat, and the prospect of manufactured items being transported to areas where supply had grown unreliable were among the possibilities she cited.
According to a Bloomberg article, India has made out to more than twenty countries about exporting wheat and is aiming to export a record 15 million tonnes of wheat this year. This year, India is forecast to produce more than 111 million tonnes of rice, resulting in a surplus.
During External Affairs Minister S. Jaishankar’s meetings in Washington last week, the country’s export of food grains to fulfill global market shortages was also mentioned. Mr. Jaishankar was in town for the ‘2+2′ conference between India and the United States’ foreign and defense ministries, as well as bilateral meetings with US officials.
India is attempting to find markets for its goods
“Of course, India is attempting to find markets for its goods. Two, it is attempting to provide meaningful support, so that “where there is hunger, there are grains to go, and nothing should prevent them from going there,” as Ms. Sitharaman stated on Friday.
India has been chastised in the United States and elsewhere for failing to take a firmer stance against Russia and not explicitly criticizing its aggression against Ukraine. The US has also been urging India to hold off on increasing its Russian oil purchases at this time. In recent weeks, Moscow has offered and supplied oil to New Delhi at a reduced price. However, Russia accounts for only a small percentage of India’s energy imports (between 1% and 4%, according to estimates from Indian and US authorities). The United States has promised to assist India in replacing Russian oil with oil from other sources.
The US is aware of India’s attitude toward Russia
In response to a query on the interplay between India’s significant defense alliance with Russia and its developing and significant trade engagement with the United States, Ms. Sitharaman cited India’s geography in her choice not to blame Russia for the invasion of Ukraine. She claimed Washington recognized India’s geopolitical reality and that “there is this acknowledgment [by the US] that there is a friend there [in India], but the friend’s geographical location has to be acknowledged, and a friend cannot be undermined for any reason.”
“It’s not like India has a choice,” Ms. Sitharaman added, explaining the challenges India faces along its northern and western borders, referring to China and Pakistan. “Indeed, India wishes to be a friend. “However, if the United States likewise wants a friend, the friend should not be undermined,” she added.
“So we’re making decisions, making calls, and having a calibrated stance because, given the geographical locational realities, we need to be strong where we are.” Ms. Sitharaman cited events such as the India-US ‘2+2’ meetings, the Biden-Modi summit virtual meeting last week, and India’s consideration of the soon-to-be-announced Indo Pacific Economic Framework (IPEF) – the Biden administration’s economic cooperation framework for the Indo Pacific – as evidence that “more and more windows of opportunities are opening,” rather than the US keeping India at a distance because of India’s “calibrated” stance