Daily Hot Topic
Topic : World Trade Organization (WTO) and Development Agenda
GS-3 Mains : Economy
Revision Notes
Context:
- India called for renewed focus on the development agenda within the WTO.
Development Agenda:
- Issues faced by developing and least developed nations:
- Access to finance and technology
- Food security
- Supply chain resilience
India’s Initiative:
- Submitted a paper to the WTO General Council urging members to:
- Propose solutions for the development agenda
- Reinvigorate discussions on development within the WTO
About the WTO:
- Established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT)
- Headquarters: Geneva, Switzerland
- Members: 164 countries
- Mandate: Promote free trade through trade agreements
- Core Principle: Developmental objectives are a priority (stated in the Marrakesh Agreement)
WTO Structure:
- Ministerial Conference: Highest decision-making body (meets every two years)
- All members participate
- Can make decisions on all WTO agreements
- General Council: Meets regularly in Geneva
- Functions as the Trade Policy Review Body and Dispute Settlement Body
- Oversees councils for Goods, Services & Intellectual Property (TRIPS)
India and the WTO
India’s Membership:
- Member since January 1, 1995.
Peace Clause (2013):
- Mechanism to address food subsidy differences.
- Allows developing nations to subsidize farmers up to 10% without facing arbitration for four years (dispute).
Concerns of Developed Nations:
- Large agricultural exporters (US, Canada) see high subsidies as distorting global market prices.
- Public stockholding at controlled prices gives India an unfair advantage, contradicting free trade principles.
India’s Concerns:
- Increased trade protectionism by some countries disguised as environmental measures.
India’s Proposals:
- Domestic support for food security programs shouldn’t be subject to reduction commitments.
- Update the calculation method for subsidy elements (currently based on outdated 1986-88 prices).
The Way Forward:
- WTO needs to adapt to changing trade dynamics and remain relevant.
- India suggests:
- WTO bodies dedicate sessions to specific needs of developing countries.
- Reinvigorate underutilized working groups (technology transfer, trade & debt).
हिन्दी