UPSC MainsPOLITICAL-SCIENCE-INTERANATIONAL-RELATIONS-PAPER-II201820 Marks
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Q20.

India's coalitional diplomacy within the WTO has earned it wide appreciation. What accounts for the success of India's coalitional diplomacy?

How to Approach

This question requires an analysis of India’s success in coalition building within the World Trade Organization (WTO). The answer should focus on the factors contributing to this success, including India’s strategic positioning, its ability to identify common interests with other developing countries, and its proactive engagement in negotiations. Structure the answer by first defining coalitional diplomacy, then detailing the historical context of India’s engagement with the WTO, followed by a breakdown of the factors contributing to its success, and finally, highlighting recent examples.

Model Answer

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Introduction

Coalitional diplomacy, in the context of international trade, refers to the practice of countries forming alliances and coordinating their strategies to achieve shared objectives within multilateral forums like the World Trade Organization (WTO). India has emerged as a prominent advocate for developing countries within the WTO, skillfully leveraging coalitional diplomacy to safeguard its interests and promote a more equitable global trading system. This approach has gained significant recognition, particularly in the face of protectionist pressures from developed nations. India’s success stems from a nuanced understanding of WTO dynamics and a proactive strategy of building consensus among diverse nations.

Historical Context of India’s Engagement with the WTO

India’s engagement with the multilateral trading system dates back to the General Agreement on Tariffs and Trade (GATT) in 1947. However, its approach evolved significantly after the formation of the WTO in 1995. Initially, India focused on securing special and differential treatment (SDT) provisions for developing countries. The failure of the Doha Development Round (launched in 2001) to deliver on its promises highlighted the limitations of a purely defensive strategy. This prompted India to adopt a more proactive and coalition-building approach.

Factors Contributing to India’s Success

1. Identifying Common Interests with Developing Countries

India has successfully positioned itself as a leader of the developing world within the WTO. It has actively sought to identify and articulate common concerns and interests shared by countries like Brazil, South Africa, Indonesia, and others. These shared interests often revolve around issues such as agricultural subsidies in developed countries, market access for developing country exports, and the protection of intellectual property rights.

2. Strategic Positioning and Leadership

India’s large economy, growing market, and increasing influence in global affairs have given it a unique position to lead coalitions. It has consistently advocated for reforms in the WTO to make it more inclusive and representative of developing country concerns. India’s active participation in various WTO committees and negotiations, coupled with its willingness to engage in constructive dialogue, has earned it respect among other member states.

3. Proactive Engagement and Negotiation Skills

India’s negotiators are known for their technical expertise and their ability to navigate complex trade negotiations. They have demonstrated a willingness to compromise on certain issues while firmly defending India’s core interests. This pragmatic approach has helped build trust and facilitate consensus among diverse stakeholders. For example, India played a crucial role in shaping the Trade Facilitation Agreement (TFA) in 2013, ensuring that it included provisions for technical assistance and capacity building for developing countries.

4. Building Alliances Beyond Traditional Partners

India has expanded its coalition-building efforts beyond traditional partners in the developing world. It has actively engaged with African countries, Least Developed Countries (LDCs), and small island developing states (SIDS) to forge broader alliances. This inclusive approach has strengthened India’s negotiating position and increased its influence within the WTO.

5. Leveraging Regional Trade Agreements

India’s active participation in regional trade agreements (RTAs) like the Regional Comprehensive Economic Partnership (RCEP) – despite ultimately not joining – has provided valuable experience in negotiating trade deals and building consensus among diverse countries. This experience has been instrumental in shaping India’s strategy within the WTO.

Recent Examples of India’s Coalitional Diplomacy

  • Agriculture Negotiations: India has consistently worked with the G-20 group of developing countries to push for reductions in agricultural subsidies provided by developed countries, which distort global agricultural markets.
  • Intellectual Property Rights (IPR): India has collaborated with other developing countries to advocate for flexibilities in the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement), particularly in relation to access to affordable medicines.
  • Fisheries Subsidies Negotiations: India has played a key role in advocating for special and differential treatment for developing countries and small-scale fishers in the ongoing negotiations on fisheries subsidies.
  • E-commerce Moratorium: India has led the charge against extending the moratorium on customs duties for electronic transmissions, arguing that it deprives developing countries of potential revenue.
Issue India’s Position Coalition Partners
Agricultural Subsidies Reduction of subsidies by developed countries G-20, African Group
TRIPS Agreement Flexibilities for access to medicines African Group, Least Developed Countries
E-commerce Moratorium Oppose extension of moratorium Indonesia, South Africa

Conclusion

India’s success in coalitional diplomacy within the WTO is a testament to its strategic foresight, proactive engagement, and ability to build consensus among diverse nations. By consistently advocating for the interests of developing countries and promoting a more equitable global trading system, India has emerged as a key player in shaping the future of the WTO. However, navigating the increasingly complex geopolitical landscape and addressing new challenges like digital trade and climate change will require continued innovation and adaptability in India’s coalitional strategy.

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

Regional Comprehensive Economic Partnership (RCEP)
RCEP is a free trade agreement among 15 Asia-Pacific nations. While India initially participated in negotiations, it ultimately withdrew due to concerns about its impact on domestic industries.

Key Statistics

In 2022, the WTO reported that developing countries accounted for approximately 60% of global trade.

Source: WTO, World Trade Report 2023

India’s share in global exports was approximately 1.8% in 2022.

Source: World Bank, Data (as of knowledge cutoff)

Examples

Doha Development Round

The Doha Development Round (2001-2015) aimed to address the concerns of developing countries regarding agricultural subsidies and market access. However, the round ultimately failed due to disagreements between major trading powers.

Frequently Asked Questions

What are the challenges to India’s coalitional diplomacy in the WTO?

Challenges include diverging interests among developing countries, pressure from developed countries, and the rise of protectionism. Maintaining unity and finding common ground among diverse nations requires continuous effort and compromise.

Topics Covered

EconomicsInternational RelationsWTOTrade PolicyDeveloping Countries