The Indian government is threatening to block the implementation of a deal struck in Bali last year by trade ministers from around the world, in a move that could halt efforts to revive multilateral trade talks and further damage the reputation of the World Trade Organisation.

The agreement last December saw the WTO’s 160 members commit to streamlining the flow of goods through borders worldwide. More importantly, it marked the first time in the body’s two-decade history that ministers had concluded a deal and came as key WTO members were prioritising regional negotiations instead.

The “trade facilitation agreement” faces its first implementation deadline on July 31st when WTO members, who make decisions by consensus, must approve a one-paragraph “accession protocol”.

But India’s commerce minister said New Delhi would not back that protocol because it was unhappy with the progress of talks on food security that ministers had also committed to in Bali. India wants immediate negotiations over the unresolved issue of its vast grain stockpiling and food subsidy programmes, she said.

– (Copyright The Financial Times Limited 2014)