India and the United States said Thursday they have resolved a row over food subsidies that has been blocking a landmark global trade agreement.

India and the United States said Thursday they have resolved a row over food subsidies that has been blocking a landmark global trade agreement.

India refused to endorse the Trade Facilitation Agreement (TFA) in July unless its food stockpiles were exempted from possible punitive measures, prompting the US to accuse it of taking the World Trade Organization "to the brink of crisis".

But on Thursday both sides agreed India's food security programmes would not be challenged under WTO rules "until a permanent solution regarding this issue has been agreed and adopted", a US government statement said.

The White House said the deal would "unlock progress toward the full and immediate implementation of the WTO Trade Facilitation Agreement, which will lower the costs of trade for developed and developing countries".

India said it was "extremely happy that India and the US have successfully resolved their differences relating to the issue of public stockholding for food security purposes".

"This will end the impasse at the WTO and also open the way for implementation of the Trade Facilitation Agreement," Commerce Minister said in a statement.

WTO Director-General Roberto Azevedo has been tirelessly campaigning to save the deal, which would streamline global customs procedures, and, he claims, create billions of dollars in benefits each year.