What are the objectives, structure and functioning of World Trade Organisation? Does signing and ratifying WTO undermine the Parliamentary Autonomy of India? Discuss.

Objectives of the World Trade Organization

The WTO's primary objectives, as enshrined in its Marrakesh Agreement, are:

• Lowering Trade Barriers: Reducing tariffs, quotas, and other non-tariff barriers to trade.
• Promoting Non-Discrimination: Adherence to the principles of Most-Favored-Nation (MFN) treatment (Article I) and National Treatment (Article III) – meaning that trade advantages granted to one member must be extended to all, and imported goods must be treated no less favorably than like domestic goods.
• Providing a Forum for Negotiations: Offering a platform for member countries to negotiate trade agreements and resolve disputes.
• Increasing Transparency: Enhancing the transparency of trade policies and regulations.
• Promoting Development: Providing special and differential treatment for developing countries.

Structure of the World Trade Organization

The WTO’s structure comprises several key bodies:

• Ministerial Conference: The highest decision-making body, meeting every two years.
• General Council: Represents all WTO members and oversees the functioning of the WTO.
• Trade Policy Review Body: Reviews the trade policies of member countries.
• Dispute Settlement Body (DSB): Resolves trade disputes between member countries. This is arguably the WTO’s most effective and powerful function.
• Councils and Committees: Deal with specific areas of trade, such as agriculture, services, and intellectual property.

Functioning of the World Trade Organization

The WTO operates through:

• Negotiations: Rounds of trade negotiations, such as the Doha Development Round (which stalled), aim to further liberalize trade.
• Trade Policy Reviews: Periodic reviews of member countries’ trade policies.
• Dispute Settlement: A structured process for resolving trade disputes, involving consultations, panel reviews, and appeals. The DSB can authorize retaliatory measures against countries found to be in violation of WTO rules.
• Technical Assistance: Providing technical assistance to developing countries to help them implement WTO agreements.

Does Signing and Ratifying WTO Undermine Parliamentary Autonomy of India?

The question of whether WTO agreements undermine India’s parliamentary autonomy is complex and involves constitutional considerations. India is a signatory to numerous WTO agreements, including the General Agreement on Tariffs and Trade (GATT), the General Agreement on Services (GATS), and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

Arguments suggesting potential undermining:

• Treaty-Making Power: Article 253 of the Indian Constitution deals with the power of Parliament to make laws with respect to trade and commerce with other nations. However, the extent to which Parliament can bind itself through international treaties is a subject of debate. Some argue that ratifying WTO agreements with stringent obligations can restrict Parliament's legislative freedom.
• Dispute Settlement Body Rulings: DSB rulings, if deemed to conflict with domestic laws, can create pressure on India to amend its legislation, potentially bypassing parliamentary scrutiny. The Shrimp-Turtle case (India vs. US) is a prime example where India was forced to change its laws to comply with a DSB ruling.
• TRIPS Agreement: The TRIPS Agreement, specifically concerning intellectual property rights, has been criticized for potentially limiting access to essential medicines and impacting public health policies, raising concerns about parliamentary sovereignty.

Arguments against undermining:

• Parliamentary Supremacy: India’s Constitution enshrines parliamentary supremacy. Parliament retains the power to ratify or reject treaties. Article 372 provides for the continuation of existing laws until modified or repealed.
• Executive’s Role: The Executive branch negotiates and signs treaties, but ratification requires parliamentary approval. This provides a check on executive power.
• Judicial Interpretation: The judiciary plays a crucial role in interpreting treaties and ensuring their compatibility with the Constitution. The Supreme Court has consistently upheld the principle that treaties are not automatically incorporated into domestic law and require implementing legislation.

The Balance: The core of the debate revolves around the interpretation of Article 253 and the extent of the Executive’s power to bind the nation. While WTO agreements impose obligations, Parliament retains the power to legislate and amend laws to comply, or even to reject the agreements altogether. The key lies in ensuring parliamentary oversight and scrutiny of trade agreements and their implementation.

Case Study: India’s experience with the TRIPS Agreement

India initially faced challenges in implementing the TRIPS Agreement, particularly concerning patent laws and access to essential medicines. The compulsory licensing provisions in the Indian Patents Act were challenged by multinational pharmaceutical companies. The government had to balance its WTO obligations with its constitutional responsibility to protect public health. This resulted in amendments to the Patents Act, but also highlighted the tensions between trade liberalization and national policy objectives.

Agreement	Key Provisions Affecting India	Parliamentary Implications
GATT	Tariff reductions, agricultural subsidies	Required adjustments to agricultural policies and import tariffs.
GATS	Liberalization of trade in services	Impact on sectors like banking, insurance, and telecommunications, requiring legislative changes.
TRIPS	Intellectual property rights	Significant impact on pharmaceutical patents and access to medicines, leading to amendments in the Patents Act.