Western countries, led by the United States, have raised concerns that such stocks could leak on to global markets, skewing trade.
During talks with Modi in August, US Secretary of State John Kerry had chided the prime minister over the impasse, saying his stance “undermines that very message that he is seeking to send about India” as a country that was open for business to the international community.
After Thursday’s announcement, US Trade Representative Michael Froman expressed confidence that the Bali agreement could be finally sealed.
“On the basis of this breakthrough with India, we now look forward to working with all WTO members and with (Azevedo) to reach a consensus that enables full implementation of all elements of the landmark Bali Package, including the Trade Facilitation Agreement,” Froman said.
At the time of the Bali accord, WTO members agreed on a four year “peace clause” to protect India from being punished over subsidies and stockpiles until a “permanent” solution” was reached.
The agreement was due to take effect in mid 2015.
But after the Bali pact, Indian officials complained there were nearly two dozen meetings on the trade facilitation pact and just a handful on subsidies.
Bali was the first multilateral agreement concluded by the WTO since its inception in 1995.
It also signalled the first concrete progress on the Doha Round of trade liberalisation talks, launched in 2001 and aimed at underpinning development in poorer nations.
It took nearly a decade to conclude the trade facilitation part of the talks, which began in 2004.
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