Following India's refusal on Thursday to sign a World Trade Organization (WTO) trade deal unless its concerns on food security were addressed, the European Union (EU) and a 25-country Australian-led group urged New Delhi to rethink its decision.

In Geneva where WTO diplomats have gathered to discuss the issue, the EU and the Australian-led group issued separate statements asking India not to block the Trade Facilitation Agreement (TFA) which would expand the global economy to an estimated US$1 trillion and provide 21 million jobs.

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The 25-country Australian-led group, which includes Canada, Mexico and Thailand, warned that a delay in the implementation of the TFA would not be in anyone's interests and that it would destabilize WTO efforts to expand global trade in the future.

The group said it would be a major setback for previous discussions in last December's Bali meeting which involved decisions concerning the Doha negotiations and other such matters agreed upon by the WTO member ambassadors.

In a separate statement, the EU called for a resolution to the problem before the deadline at the end of the month. It was imperative that the trade agreement be settled by July 31, arguing that timing was crucial for the global trade development.

Noting the WTO's credibility during the financial crisis that effectively functioned as a "firewall against protectionism," the EU said that failure to arrive at an accord on the trade deal in time would be a blow to the organization's credibility.

The EU, in reference to India's food security concerns, defended the WTO.

It said the organization has been working on a solution over the past months with regard to the interest of "developing and least developed countries."

The Union's statement urged all WTO member nations to respect the results of the meeting in Bali and declared that the basic elements agreed upon - including the July 31 deadline - was not up for renegotiation.

A statement from India's Commerce Industry cited by Dnaindia.com, said it wanted the TFA to be implemented as a package that included a permanent solution to its food security.

TagsEuropean Union, World Trade Organization, WTO, EU, trade deal, Trade Facilitation Agreement, TFA, global trade, food security, crop subsidy, food stockpiling, global economy