The United States and India on Thursday reached a settlement to resolve a dispute that has hindered progress on a World Tradr Organization trade facilitation deal to expand the global economy by US$1 trillion and provide 21 million more jobs.

Proponents of the WTO customs deal have expressed hope that global trade reform talks initially established during the 160-member trade bloc's meeting in Bali last year, could finally move forward after drawing a months-long impasse after India's rejection of the deal.

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The U.S.-India deal brings the organization's thrust in pursuit global trade back on track, said WTO Director General Roberto Azevedo.

He said that full implementation of the "Bali package" would be a significant step for the WTO, which has been trying to negotiate for an improved multilateral trading system in the past decade.

In July, WTO members ready to sign the deal were taken by surprise after India refused and vetoed the agreement.

India said it needed assurances that it could continue stiockpiling and subsidizing crops -- a practice that goes against current WTO guidelines -- without being penalized, before it would sign the deal.

The organization had acceded during talks in Bali and allowed such practice to continue temporarily until 2017 while a lasting solution could be agreed on.

India rejected the offer and insisted on a definite solution.

Now, the U.S.-India deal has grantrd the latter with an indefinte period to stockpile its crops under the protection of a "peace clause."

Thursday's compromise eliminates the "constructive ambiguity" of the peace clause's effective applicable period and provides clear language that such protection would stay in place until a permanent solution could be found, Reuters relayed citing a source with knowledge of the negotiation.

Observers call the U.S.-India deal a win for Prime Minister Narendra Modi, who has emphasized the need to ensure the country's 1.2 billion citizens have enough food to eat.

The deal, a major breakthrough for thr WTO, is the second in days following a U.S.-China accord on cutting IT tariffs, a deal estimated at US$1 trillion.