India and the US have resolved their disagreements on food security issues, paving the way for a global trade pact.
The prospect of a global trade deal had faded at a World Trade Organization (WTO) summit in Indonesia last year, after India said it would not budge on some rules governing food subsidies.
The trade deal had been due to take effect in the middle of next year.
The breakthrough stems from a bilateral summit in September when Prime Minister Narendra Modi visited the US.
Analysts have estimated the global trade deal could add $1tn (£630bn) to the world economy.
US Trade Representative Michael Froman said in a statement: "On the basis of this breakthrough with India, we now look forward to working with all WTO Members and with Director General Roberto Azevedo to reach a consensus that enables full implementation of all elements of the landmark Bali Package, including the Trade Facilitation Agreement."
The statement also said Delhi and Washington have agreed that India's food security programmes would not be challenged under WTO rules "until a permanent solution regarding this issue has been agreed and adopted".
This breakthrough on the issue of food subsidies will be seen as a major victory for India.
Earlier this year, India refused to back the Trade Facilitation Agreement - a key deal which could add $1tn to the global economy and create more than 20 million jobs, mostly in developing countries.
So India's decision to hold out was strongly criticised. Some even saw it as the beginning of the end of the WTO.
India feared that signing up to the deal would affect its $12bn food security programme - a key welfare measure aimed at delivering millions of people from poverty.
As part of this, India buys grains such as rice and wheat from farmers at above market prices, sells a part of it to poor households and stockpiles the rest to guard against shortages.
It does this to both protect farmers, but also provide affordable food to many. Under the TFA, India would have had to agree to cap its programme or invite sanctions.
India argued that the TFA should be implemented without any conditions until a separate agreement on the issue of food subsidies is reached, a concession it has now won.
India's Commerce Minister Nirmala Sitharaman took to social media to share the latest developments, where she tweeted that India and the US "had successfully resolved their impasse over food securities in #WTO".
The minister added later: "WTO General Council will receive India's proposal and US will support us."
At the centre of the dispute, India had argued that the country itself and other developing economies see food stockpiling as a necessary measure to ensure poor farmers and consumers survive in the business community.
But stockpiling and subsidies for the poor are considered to be distorting to trade, under existing WTO rules.
Western countries, led by the United States, have previously raised concerns that the stockpile could affect global markets and skew trade.