Reviving the World Trade Organization
Why in News?
- The World Trade Organization (WTO), established in 1995, is facing significant challenges that have weakened its role in global trade governance. Issues such as the paralysis of its dispute settlement mechanism, stalled negotiations, and rising protectionism have prompted calls for comprehensive reforms to ensure its continued relevance and effectiveness.
Important Key Points:
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Dispute Settlement Paralysis:
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The WTO’s Appellate Body has been non-functional since 2019 due to the blocking of new appointments, primarily by the United States. This has undermined the credibility and effectiveness of the WTO’s dispute resolution mechanism.
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Stalled Negotiations:
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The Doha Development Agenda (DDA), initiated in 2001, remains incomplete, reflecting difficulties in consensus-building among member countries. This has hindered progress on critical issues such as agriculture, services, and intellectual property rights.
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Rise of Protectionism and Trade Wars:
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The escalation of trade tensions, notably between the United States and China, has challenged the WTO’s principles of free and fair trade. Unilateral trade measures and retaliatory tariffs have disrupted global trade norms.
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Ineffective Special and Differential Treatment (S&DT):
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Developed nations argue that emerging economies like India and China should assume greater obligations, leading to debates over the adequacy and fairness of S&DT provisions for Least Developed Countries (LDCs).
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India’s Stance:
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India advocates for reforms that strengthen the WTO’s foundational principles, including consensus-based decision-making and non-discrimination. It emphasizes the need to preserve S&DT provisions to protect the interests of developing and least-developed countries.
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