UPSC MainsPOLITICAL-SCIENCE-INTERANATIONAL-RELATIONS-PAPER-II201310 Marks150 Words
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Q2.

Sketch the leadership role of India in WTO negotiations.

How to Approach

This question requires a nuanced understanding of India’s role within the World Trade Organization (WTO). The answer should focus on India’s leadership in advocating for the interests of developing countries, its participation in key negotiations (like agriculture, TRIPS, and fisheries subsidies), and its stance on reforming the WTO itself. Structure the answer chronologically, highlighting key phases of India’s engagement and its evolving leadership role. Mention specific instances where India has taken a leading position, and the challenges it faces.

Model Answer

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Introduction

The World Trade Organization (WTO), established in 1995, serves as the primary forum for global trade negotiations. India, as a founding member, has progressively assumed a leadership role, particularly in voicing the concerns of developing and least-developed countries. This leadership isn’t about dictating terms, but rather advocating for a fairer, more equitable, and inclusive multilateral trading system. Recent challenges to the WTO, including the impasse in the Appellate Body and rising protectionism, have further amplified India’s role as a champion of multilateralism and a proponent of necessary reforms.

Early Years & Focus on Special and Differential Treatment (1995-2005)

Initially, India’s focus was on securing ‘Special and Differential Treatment’ (SDT) provisions for developing countries, recognizing their unique economic vulnerabilities. India actively participated in the Uruguay Round negotiations, pushing for concessions in agriculture, textiles, and tariffs. It consistently highlighted the imbalances in the existing trading system and advocated for a level playing field. The emphasis was on ensuring that WTO rules didn’t hinder its developmental goals.

The Doha Round & Rise as a Negotiating Power (2001-2013)

The Doha Round (2001) marked a turning point. India emerged as a key player in the G20 group of developing countries, challenging the demands of developed nations, particularly the US and EU, on issues like agricultural subsidies and market access. India’s firm stance, alongside Brazil, played a crucial role in stalling the Doha Round, demonstrating its growing negotiating power. The 2008 food security crisis further solidified India’s position, as it advocated for policy space for public stockholding programs for food security, a critical issue for millions of its citizens.

Post-Doha & Focus on New Issues (2013-Present)

With the Doha Round stalled, India has focused on new issues like e-commerce, investment facilitation, and fisheries subsidies. It has been a vocal critic of proposals that could compromise its policy space and developmental interests. India has actively pushed for a permanent solution to the public stockholding issue, seeking amendments to the Agreement on Agriculture (AoA). Furthermore, India has been at the forefront of advocating for reforms in the WTO, particularly the Appellate Body crisis, proposing alternative dispute resolution mechanisms.

Key Areas of Leadership

  • Agriculture: Championing the interests of farmers and advocating for reduced agricultural subsidies by developed countries.
  • TRIPS Agreement: Pushing for flexibilities in the TRIPS agreement to ensure access to affordable medicines, particularly during public health emergencies.
  • Fisheries Subsidies: Advocating for provisions that address overcapacity and illegal, unreported, and unregulated (IUU) fishing, while protecting the livelihoods of small-scale fishers.
  • WTO Reform: Proposing reforms to the dispute settlement system and advocating for greater transparency and inclusivity in WTO decision-making.
Negotiation Area India’s Stance Impact
Agriculture Reduced subsidies by developed nations, policy space for public stockholding Stalled Doha Round, increased focus on food security
TRIPS Flexibilities for access to medicines Increased access to affordable medicines in developing countries
Fisheries Subsidies Address overcapacity, protect small-scale fishers Ongoing negotiations, potential for sustainable fisheries management

However, India’s leadership is not without challenges. It faces pressure from developed countries to open its markets further and adopt stricter intellectual property rights. Balancing its developmental needs with its commitments to the WTO remains a complex task. Furthermore, navigating the diverging interests of other developing countries requires skillful diplomacy.

Conclusion

India’s leadership in WTO negotiations has evolved from seeking special treatment to actively shaping the global trade agenda. It has consistently advocated for a fairer and more equitable trading system, prioritizing the interests of developing countries. While challenges remain, India’s commitment to multilateralism and its proactive engagement in WTO reforms are crucial for ensuring a sustainable and inclusive global trading environment. Continued engagement and a constructive approach will be vital for navigating the evolving landscape of international trade.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Agreement on Agriculture (AoA)
An international treaty that came into effect in 1995, establishing rules and regulations for agricultural trade. It aims to create a fairer and more open agricultural trading system.

Key Statistics

India’s share in world merchandise trade was 1.8% in 2022.

Source: World Trade Organization (WTO), 2023

India is the world’s largest importer of vegetable oils, accounting for around 15% of global imports (as of 2023).

Source: USDA Foreign Agricultural Service (Knowledge cutoff: 2023)

Examples

India’s Solar Panel Dispute

India challenged the US’s imposition of safeguard duties on solar panels imported from India at the WTO, arguing that the duties were inconsistent with WTO rules. This case demonstrated India’s willingness to use the WTO dispute settlement mechanism to protect its trade interests.

Frequently Asked Questions

What is the significance of the Appellate Body crisis in the WTO?

The Appellate Body, the WTO’s final court of appeal, became dysfunctional in 2019 due to the US blocking the appointment of new judges. This crisis has paralyzed the WTO’s dispute settlement system, undermining the rule-based trading order.

Topics Covered

EconomyInternational RelationsTradeWTOTrade PolicyGlobal Trade