Despite Challenges, WTO Is Relevant For India
Context: Despite multiple challenges, World Trade organization (WTO) still remains a relevant body.
Issues with WTO system
- Administrative Concerns: Trump administration which virtually dismantled the operations of the trade body’s (WTO’s) dispute settlement mechanism by refusing to appoint officials to the key appellate body.
- The expectation from Biden was based on the premise that the new regime was committed to playing a greater role in the multilateral arena but remains in limbo even now.
- Continuing disputes regarding farm subsidies: The tussle between developed and developing economies over farm subsidies remains unresolved even after decades of negotiation.
- Conflicts regarding fisheries subsidies: Many countries carrying out industrial-scale fishing in areas outside their exclusive economic zone and provide huge subsidies to their seafood industries.
- Pushing up of new trade agendas in interests of developed nations: Efforts are now being made assiduously to include new items on the trade body’s agenda, including investment facilitation, e-commerce and rules of MSMEs (micro, small and medium enterprises).
India’s gains being a member of WTO
- Key role in pandemic management: The proposed waiver on intellectual property rights for all technologies for the detection, prevention and treatment of Covid 19.
- In facilitation of trade flows as India is yet to become part of any of the major regional trading blocs.
Conclusion: Clearly India’s interest is to remain an active leader of the developing world in the multilateral trade body rather than become a passive spectator. A predictable rule-based trade organization that relies on consensus for decision-making is need of the hour.
