India Pushes for WTO Reforms, Emphasizing Need to Address Trade Distortions

India has called for sweeping reforms to the World Trade Organization (WTO) during a high-level mini-ministerial meeting of 25 member countries in Paris, pressing for action against non-tariff barriers and the restoration of the WTO’s stalled dispute settlement mechanism. Commerce and Industry Minister Piyush Goyal outlined India’s vision for a modernized WTO, emphasizing the need to address trade distortions and bolster multilateral governance ahead of the organization’s crucial ministerial conference next year.

Speaking to reporters after the Australia-convened meeting, Goyal detailed India’s three-pronged reform agenda: tackling non-tariff barriers that restrict market access, addressing distortions caused by non-market economies, and reviving the WTO’s dispute settlement system, which has been paralyzed since 2009 due to U.S. opposition to appellate body appointments. The minister stressed the importance of preserving the WTO’s consensus-based decision-making and special treatment for developing nations, which India views as cornerstones of the organization’s legitimacy.

Dispute settlement system

The dysfunctional dispute settlement system has left countries without a mechanism to resolve trade disputes, undermining the WTO’s enforcement capabilities. While some members have proposed the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) as a temporary solution, Goyal expressed doubts about its effectiveness. “Only one or two members spoke about it, but there doesn’t seem to be much consensus or traction. I haven’t heard of any cases resolved through MPIA,” he remarked.

India also firmly opposed efforts to expand the WTO’s mandate beyond traditional trade issues, particularly rejecting a China-led Investment Facilitation for Development proposal supported by 128 countries. Goyal argued that such initiatives risk fragmenting the multilateral system and creating divisions among members. “Issues mandated at the WTO should take priority and be resolved first. Non-trade issues should not be introduced, as they would deepen differences,” he said.

The Paris discussions also tackled longstanding challenges, including agricultural trade reforms and environmental concerns. Key priorities included finding permanent solutions for public food grain stockholding programs and addressing overfishing practices that threaten marine ecosystems. Goyal emphasized resolving existing mandated issues before introducing new frameworks, reflecting India’s focus on completing unfinished business.

Despite growing tensions within the 166-member organization, Goyal dismissed claims of an existential crisis for the WTO. “One should not jump to conclusions about a crisis,” he said, advocating for pragmatic solutions within existing frameworks. He highlighted a collective resolve among participating countries to strengthen the WTO, respect its core principles, and promote global trade growth.

(Courtesy DD News & ANI)