The World Trade Organization (WTO) has played a critical role in shaping global trade norms, but its relevance is increasingly being questioned. In this context, evaluate whether India should prioritize strengthening the WTO or seek alternative trade arrangements.
Kartavya Desk Staff
Topic: Important International institutions, agencies and fora- their structure, mandate
Topic: Important International institutions, agencies and fora- their structure, mandate
Q4. The World Trade Organization (WTO) has played a critical role in shaping global trade norms, but its relevance is increasingly being questioned. In this context, evaluate whether India should prioritize strengthening the WTO or seek alternative trade arrangements. (15 M)
Difficulty Level: Medium
Reference: IE
Why the Question? A recurring demand from a section of Indian farmers is that India should exit the World Trade Organisation (WTO). They believe WTO rules hinder their ability to secure a legal guarantee for a minimum support price (MSP). Key Demand of the Question The question demands a balanced evaluation of WTO’s role, its declining relevance, and whether India should work towards strengthening the multilateral trade order or prioritize alternative trade arrangements. A logical and well-structured argument covering both dimensions is essential. Structure of the Answer Introduction: Briefly highlight WTO’s role in global trade governance and why its relevance is being questioned due to dispute settlement paralysis, trade imbalances, and rising protectionism. Body: WTO’s role in shaping trade norms and why its relevance is questioned – Mention its contribution to global trade stability, dispute resolution, and market access, but also discuss its weakening influence, delays in reforms, and challenges like unilateral trade restrictions. Why India should prioritize strengthening the WTO – Highlight benefits of a rules-based global trade system, dispute resolution, multilateral leverage, and protection of Indian exports from unfair practices. Why India should seek alternative trade arrangements – Discuss how bilateral FTAs, regional groupings, and sectoral trade agreements can help India bypass WTO deadlocks and expand trade with key partners. Conclusion A balanced approach is required, where India continues to push for WTO reforms while diversifying its trade strategies through regional and bilateral engagements to safeguard its interests.
Why the Question?
A recurring demand from a section of Indian farmers is that India should exit the World Trade Organisation (WTO). They believe WTO rules hinder their ability to secure a legal guarantee for a minimum support price (MSP).
Key Demand of the Question
The question demands a balanced evaluation of WTO’s role, its declining relevance, and whether India should work towards strengthening the multilateral trade order or prioritize alternative trade arrangements. A logical and well-structured argument covering both dimensions is essential.
Structure of the Answer
Introduction:
Briefly highlight WTO’s role in global trade governance and why its relevance is being questioned due to dispute settlement paralysis, trade imbalances, and rising protectionism.
• WTO’s role in shaping trade norms and why its relevance is questioned – Mention its contribution to global trade stability, dispute resolution, and market access, but also discuss its weakening influence, delays in reforms, and challenges like unilateral trade restrictions.
• Why India should prioritize strengthening the WTO – Highlight benefits of a rules-based global trade system, dispute resolution, multilateral leverage, and protection of Indian exports from unfair practices.
• Why India should seek alternative trade arrangements – Discuss how bilateral FTAs, regional groupings, and sectoral trade agreements can help India bypass WTO deadlocks and expand trade with key partners.
Conclusion
A balanced approach is required, where India continues to push for WTO reforms while diversifying its trade strategies through regional and bilateral engagements to safeguard its interests.