UPSC Previous Year Question | Mains GS2 | 2018

What are the key areas of reform if the WTO has to survive in the present context of Trade War, especially keeping in mind the interest of India? (15) (250 words)

Answer

Introduction

The WTO remains valuable as a rules-based forum, but trade conflict exposes outdated rules, weak dispute settlement and unequal distribution of gains.

Priority Reforms

  • Restore a functioning two-tier dispute settlement system with workable appellate arrangements and compliance timelines.
  • Clarify special and differential treatment so development needs are protected without indefinite exemptions.
  • Update rules for digital trade, e-commerce, services, subsidies, state-owned enterprises, investment facilitation and climate measures.
  • Improve notification and transparency, especially for agricultural support, export restrictions and industrial subsidies.

India should build coalitions with developing countries while avoiding protectionism that raises domestic costs. A functioning WTO gives smaller economies legal voice against unilateral pressure. Reform must therefore combine flexibility for development with enforceable, transparent disciplines that prevent disguised protection by all major powers.

Regular reporting to the legislature, public disclosure of reasons and accessible remedies would make the arrangement durable and reduce needless institutional confrontation.

India Specific Interests

  • Preserve food-security programmes and public stockholding with a permanent solution, while seeking fair agricultural market access.
  • Defend affordable generic medicines and policy space for public health under TRIPS flexibilities.
  • Address fisheries subsidies, services movement, technology access and arbitrary carbon-border measures through negotiated rules.
  • Use plurilateral agreements only with openness and development safeguards; strengthen domestic competitiveness, standards and export logistics.
  • Consensus-building and credible reform are preferable to unilateral tariff escalation.

Keywords

WTO reform; trade war; dispute settlement; food security; TRIPS

Topics: india trade interests, international trade, trade war, wto