Day 48 – Q. 5. “In the context of growing trade disputes and developing nations’ concerns, examine the role of the WTO in ensuring equitable global trade. How can India balance its interests within a weakening multilateral trade regime?” (250 words, 15 marks)

Q. 5. “In the context of growing trade disputes and developing nations’ concerns, examine the role of the WTO in ensuring equitable global trade. How can India balance its interests within a weakening multilateral trade regime?” (250 words, 15 marks)

Introduction 

The WTO, founded in 1995, aims to foster rules-based global trade. Yet rising protectionism,  disputes between rich and poor nations, and stalled reforms have weakened its credibility— affecting countries like India that rely on equitable trade access. 

Body

Role of WTO in ensuring equitable global trade 

1. Rules-based framework: WTO provides legal certainty and predictability in trade through  binding agreements. 
2. Special and Differential Treatment (S&DT): Allows developing nations like India longer  timelines and flexibilities in obligations. 
3. Dispute resolution: WTO’s Dispute Settlement Body (DSB) offers a mechanism to resolve  conflicts without resorting to unilateralism. 
4. Platform for negotiations: WTO enables collective bargaining through rounds like Doha,  aimed at addressing developmental issues. 
5. Capacity building: WTO assists low-income countries with trade-related training,  technical assistance, and policy support. 

Challenges in current multilateral trade regime 

1. Dispute settlement paralysis: The Appellate Body has been non-functional since 2019  due to U.S. opposition to appointments. 
2. Stalled negotiations: The Doha Development Agenda remains unresolved, limiting  progress on key developmental issues. 
3. Developed-developing divide: Nations like the U.S. and EU question S&DT benefits,  affecting India’s policy space. 
4. Rise of FTAs and plurilaterals: Countries bypass WTO by forming regional or selective  trade agreements, weakening its centrality. 
5. Pressure on subsidies: Demands to reduce farm and fisheries subsidies disproportionately  affect India and other developing nations. 

India’s approach to balancing its interests 

1. Assertive multilateralism: India actively defends its right to S&DT and highlights the  equity dimension in trade talks. 
2. Strategic use of FTAs: Engaging in bilateral/regional pacts (e.g., with UAE, Australia) while  retaining WTO principles. 
3. Coalition building: Partnering with Global South and groups like G33 to push back against  developed world’s pressures. 
4. Trade policy review: India is strengthening domestic manufacturing (PLI schemes), standards, and export competitiveness. 
5. Digital and services trade: Advocates for policy space in e-commerce and data  governance to protect domestic interests. 

Conclusion

Despite a weakening regime, the WTO remains vital for ensuring fair trade access. India must  continue to engage with multilateral platforms while adapting through strategic bilateralism  and economic self-strengthening to protect its long-term interests.