India susceptible to trade disputes without permanent solution for food security

Syllabus: GS-III

Subject: Economy

Topic: Food security.

Tags: #Foodsecurity #Tradedisputes.

Issue: Food Security.

Context: India may face potential trade disputes at WTO without permanent solution for food security, according to the discussions ahead of 13th ministerial conference (of WTO) in Abu Dhabi.


  • Uncertainty around ‘peace clause’ provisions prompts push for clearer guidelines.
  • India invoked ‘peace clause’ due to rice subsidy.
  • There is pressure to reduce support by 50% by 2030.
  • Developing countries seek permanent solution to avoid disputes, ensure trade compliance.

  Prelims connect

 World Trade Organisation (WTO): Peace Clause.

·         Protects food procurement programs of developing countries from WTO actions if subsidy limits are surpassed.

·         Aims to prevent disruption of global trade caused by high subsidies.

India’s Invocation of Peace Clause:

·         In 2020, India informed WTO of $5 billion subsidies for rice production, exceeding the threshold.

·         Invoked Peace Clause to shield against WTO actions regarding the breach.

India’s Justification for Breaching Subsidy Limits:

·         Restricted rice exports to stabilize global markets, preventing distortion.

·         Maintained ample food reserves to address production fluctuations and respond to emergencies.

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