At WTO, India Calls for Focus on Real-Life Trade Issues

At WTO, India Calls for Focus on Real-Life Trade Issues

Subject: Economy

Sec: External sector

• Prioritization: India urges prioritization of real-life trade issues at the World Trade Organization (WTO) that impact developing countries.
• Key Issues Highlighted:
  • Access to finance and technology.
  • Bridging the digital divide.
  • Enhancing effective aid for trade.
  • Ensuring food security.
  • Addressing issues hindering digital development.
• Paper Submission:
  • India submits a paper titled ’30 years of WTO: how has development dimension progressed? – a way forward’ to the WTO General Council.
• Call to Action:
  • India calls upon WTO members to propose solutions for these issues to refocus on the development dimension of WTO.

Importance of Development Dimension:

• Core Objective: Development dimension has been integral to the Marrakesh Agreement establishing the WTO.
• Primacy to Development: Marrakesh Agreement preamble prioritizes developmental objectives of the organization.
• Defender of the Weak: WTO envisioned as defender of rights of weak and vulnerable members, advocating reason and equity.

MC13 Abu Dhabi Ministerial Conference:

• Unfinished Development Agenda: India notes substantial unfinished development agenda from MC13 Abu Dhabi Ministerial Declaration.
• Call for Strengthened Discussions: Seeks to strengthen discussions and debate on development issues in all regular bodies of the WTO.

By emphasizing real-life trade issues and the development dimension at the WTO, India seeks to encourage proactive discussions and solutions that address the needs of developing countries and promote equitable global trade.

Outcomes of MC 13 of WTO and Hits & Misses for India:

• Agriculture:
  • India’s Demand: Seeking a permanent solution to the public stock holding issue.
  • Outcome: No agreement reached, developed nations oppose due to potential impact on global food security.
  • Impact on India: No immediate threat due to ‘peace clause,’ shielding from legal challenges.
• Fisheries Subsidies:
  • India’s Demand: Curb harmful subsidies for distant water fishing.
  • Outcome: No outcome document regarding fisheries subsidies.
  • Impact on India: Retains policy space for artisanal fisheries.
• E-Commerce:
  • India’s Demand: Opposing continued exemption of Customs duties on e-commerce.
  • Outcome: Maintenance of tax breaks on electronic transmissions until 2026.
  • Impact on India: Impacts tax revenue collection, limits policy space for digital industrialization.
• Dispute Settlement Mechanism:
  • India’s Demand: Establishment of a fully functional dispute settlement system.
  • Outcome: Resolution to establish accessible dispute settlement system by 2024.
  • Impact on India: Aids in faster resolution of trade disputes involving India.

Marrakesh Agreement

The Marrakesh Agreement, signed in April 1994 in Marrakech, Morocco, established the World Trade Organization (WTO), marking a significant evolution in global trade governance. The agreement was the culmination of the Uruguay Round of trade negotiations (1986-1994), which aimed to extend the scope of trade liberalization to sectors not previously covered by General Agreement on Tariffs and Trade (GATT) rules, such as services and intellectual property.

Core Objectives and Structure:

• Trade Liberalization: The agreement sought to reduce tariffs and other barriers to trade, aiming to foster a more open and fair global trading system.
• Dispute Resolution: It introduced a more structured process for resolving trade disputes between countries, with the establishment of the Dispute Settlement Body (DSB).
• Monitoring and Transparency: The WTO was tasked with monitoring national trade policies, ensuring transparency, and providing a forum for trade negotiations.

Key Components:

1. Trade in Goods: Through the General Agreement on Tariffs and Trade (GATT), the Marrakesh Agreement aimed to liberalize trade in goods by reducing tariffs and eliminating quantitative restrictions.
2. Trade in Services: The General Agreement on Trade in Services (GATS) was introduced to extend the multilateral trading system to the service sector, addressing issues like access to foreign markets and national treatment.
3. Intellectual Property: The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) sought to establish common standards for protecting and enforcing intellectual property rights globally.
4. Agriculture and Textiles: Specific agreements were made to address the unique challenges and protections in agriculture and textiles, sectors that had been subject to extensive trade restrictions.