Trade between countries has been an integral part of the relationship between two countries since ancient times. This can be seen from the trade relations that existed between the Indus Civilisation and Egypt, Mesopotamia, etc. Further, the Silk Route was established to promote trade between the East and the West. Trade was also a reason for the rise of colonialism, which ultimately culminated in two world wars.

After the Second World War, it was felt that the liberal approach to promoting peace through interdependence was very effective. In this approach, trade is essential for promoting peace. Thus, steps were taken to promote world trade, and negotiations started.

History of WTO

• Bretton Woods Conference: The Bretton Woods Conference in 1944 laid the foundation for post-WWII economic cooperation, leading to the establishment of institutions like the International Monetary Fund (IMF) and the World Bank.
• However, these institutions were related to the infrastructure financing for the post-World War economies. There was no institution for the free trade in the world economies. Therefore, the General Agreement on Tariffs and Trade (GATT) was signed in 1947.

General Agreement on Tariffs and Trade (GATT):

GATT was signed in 1947 as a mechanism to promote international economic cooperation through the removal of trade barriers i.e. custom duties, Quotas, subsidies, other taxes and free trade routes

During the GATT years, eight rounds of tariff negotiations were held between 1947 and 1994 to promote free trade around the world. However, it was found to be highly insufficient for two reasons:

1. GATT was not a permanent organisation and therefore couldn’t provide a continuing institutional mechanism to cater to the trade-related problems of the world economy. Many of these problems, such as the problem of trade barriers were permanent in nature.
2. The world trade was growing very fast; an agency was needed to monitor, regulate and supervise the international trade. GATT was unable to deal with structural deficiencies and spillover effects of certain countries’ policies on world trade.

As a result, WTO was formed.

Uruguay Round

Uruguay Round (1986-94),  was the 8^th round of multilateral trade negotiations under GATT, after which WTO came into existence. This was the biggest reform of the world’s trading system after the creation of GATT at the end of the Second World War.

The Final Act of WTO

The “Final Act” of the World Trade Organization (WTO) refers to the concluding document of the Uruguay Round of Multilateral Trade Negotiations, signed on April 15, 1994, in Marrakesh, Morocco. This act marked the formal establishment of the WTO and laid out the agreements and commitments that member countries agreed to follow.

The Act does two things:

1. Agreement establishing WTO:

Regulation of trade between participating countries by providing:

1. A framework for negotiating trade agreements.
2.  

Six Foundational Agreements

The Agreement (“Final Act”) falls under 6 main parts:

1. Agreement on Trade in Goods: It expands and builds on the GATT 1947, addressing tariffs, non-tariff barriers, and trade rules for goods. It includes several agreements such as:
   • Agreement on Agriculture (AoA)
   • Multilateral agreements on trade in goods
   • Total Aggregate Measurement of Support (AMS)
   • Agreement on the Application of Sanitary and Phytosanitary Measures (SPS):
   • Agreement on Technical Barriers to Trade (TBT)
   1. Agreement on Market Access for Goods
2. General Agreement on Trade in Services (GATS): Extends the multilateral trading system to the services sector.
3. Trade-Related Investment Measures (TRIMS):
   1. Applies to a country’s domestic regulations.
   1. Applies to foreign investors, often as part of an industrial policy.
4. Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): Focuses on the protection and enforcement of intellectual property rights.
5. Dispute Settlement Understanding (DSU): Provides a mechanism for dispute settlement.
6. Trade Policy Review Mechanism (TPRM): Conducts reviews of government trade policies.

Since 1994, several other agreements have been signed under WTO.

Currently, the total number of trade agreements under the WTO consists of 16 different multilateral agreements in which all WTO members are parties. Other than these, there are two plurilateral agreements signed in which only some WTO members are parties.

The objective of WTO:

The WTO provides a forum to negotiate agreements to reduce obstacles to international trade so that a level playing field can be ensured for all. With these objectives, it contributes to trade-led economic growth and development.

The WTO also provides a legal framework for the implementation and monitoring of trade agreements, as well as for settling disputes arising with their application and interpretation.

Founding principles

Founding principles are the core ideas upon which the WTO was originally established. Its focus is to set the fundamental framework and goals of the organisation.

• Pursuit of open borders: The WTO was established to promote trade between countries by reducing trade barriers such as tariffs, quotas, and subsidies.
• Non-Discrimination: Guarantee the most-favoured-nation principle(MFN principle) and non-discriminatory treatment by members so that there is equal treatment for all member countries.

Guiding principles

These are the operational norms and rules that direct the ongoing functioning and policies of the WTO. It provides detailed rules and practices to achieve the foundational goals. Some of these are as follows:

• Reciprocity: Encourages mutual concessions in trade negotiations, ensuring that any trade benefits provided by one country are reciprocated by the other.
• Transparency: Member countries need to be open about their trade policies and practices. This includes publishing trade regulations and notifying the WTO of any changes, ensuring a predictable trading environment.
• Safety Valves: Allows for exceptions to the trade rules in order to protect public health, safety, and national security. This ensures that trade liberalisation does not compromise essential national interests.
• Binding commitments: Trade commitments made by members are legally enforceable through the dispute settlement mechanism of WTO.

Structure of the WTO:

The WTO currently has 164 members, consisting of 117 developing countries or separate customs territories. It is supported by a 700-staff Secretariat, which is led by the WTO Director-General. The Secretariat of WTO is located in Geneva (Switzerland), and it has an annual budget of approximately USD 237 million.

Institutional Organisation of WTO

• Ministerial Conference: The highest institutional body is the Ministerial Conference. It meets roughly once every two years.
• General Council: A General Council conducts the organisation’s business during the two ministerial conferences.

Ministerial Conference and General Council consist of all members. Specialised subsidiary bodies (Councils and Committees) monitor and administer the implementation of various WTO agreements.

• Dispute settlement body (DSU): It considers complaints of member countries against violation of rules by any member country.
• Trade Policy Review Body (TPRM): Reviews the trade policy of member countries. It also reviews the policies of powerful countries every two years.

Decision in WTO

WTO follows the principle of making decisions through consensus instead of voting so that the interests of small countries can be considered.

Important Agreements under WTO:

Agreement on Agriculture (AoA):

The Agreement on Agriculture (AoA) is a treaty under the WTO that aims to reform the global agricultural trade system. It was established during the Uruguay Round negotiations and came into force in 1995.

The Agreement on Agriculture consists of three pillars — domestic support, market access, and export subsidies.

Domestic Support:

The agreement on agriculture (AOA) negotiated during the Uruguay round classifies subsidies into three categories: amber box, blue box, and green box.

• Green box Subsidies: Those subsidies that do not distort trade are known as the green box Subsidies. It comprises government support for R&D and promotion policies, spending on environmental protection and regional development programmes etc. 
• Amber Box Subsidies: Domestic support measures, which are considered to distort production and trade, fall into the amber box. These subsidies include support prices or subsidies directly related to production quantities. These supports are subject to limits. This threshold is generally 5% of the value of agricultural production for developed countries and 10% for most developing countries.
• Blue Box: This is the “amber box along with conditions”. These conditions reduce distortion in the trade. Any support that would normally be placed in the amber box will be placed in the blue box if the subsidy support also requires farmers to limit production.

Total Aggregate Measurement of Support (AMS):

Total Aggregate Measurement of Support (AMS) is a key concept in the Agreement on Agriculture (AoA). It represents the total level of support provided by governments to their agricultural sectors that are considered trade-distorting.

• AMS is calculated by quantifying the monetary value of all support measures, including Direct Payment and Price support.
• Those supports that are not covered under the Green or Blue Boxes are included in the AMS.

Difference between Amber Box and AMS

AMS represents the total level of support provided to the agricultural sector that is considered to distort trade. In comparison, the Amber box refers to domestic support measures that are considered to distort trade and production. Thus, Amber Box measures are included in the AMS calculation.

Export subsidies:

Export subsidies are financial support from governments to domestic producers for exporting goods, allowing them to sell at lower prices in international markets. The AoA aims to reduce and eventually eliminate these subsidies to ensure fair competition.

• Reduction commitment:  Developed nations are required to reduce export subsidies by a minimum of 36% by value or 21% by volume over 6 years. Figures for developing nations are either a 24% minimum cut in export subsidies by value or a 14% cut by volume within 10 years.
• Ban on New Subsidies: The AoA prohibits the introduction of new export subsidies for agricultural products.

Agreement on Market Access for Goods:

• Market access refers to the reduction in tariff barriers by the members of the WTO and the opening up of their agricultural markets to international competition.
• All non-tariff barriers were to be converted into corresponding levels of tariffs. All nations avowed a schedule of base period tariffs, which is known as bound tariffs.

Agreement on the Application of Sanitary and Phytosanitary Measures (SPS):

The SPS Agreement is a key component of the World Trade Organization (WTO) framework that addresses food safety and animal and plant health standards that may affect international trade. For that, it promotes the use of international standards (e.g., those set by Codex Alimentarius, OIE, and IPPC) to harmonise SPS measures globally, facilitating smoother trade. Thus, it plays a crucial role in balancing the protection of health and safety with the need for free trade.

Agreement on Technical Barriers to Trade (TBT)

• It aims to ensure that technical regulations, standards, and conformity assessment procedures do not create unnecessary obstacles to international trade. Thus, there are mandatory requirements for products, including labelling, packaging, and safety standards.
• TBS agreement ensures regulations should not be trade-restrictive but should achieve legitimate objectives, such as protecting human health or the environment.

General Agreement on Trade in Services (GATS)

The General Agreement on Trade in Services (GATS) is a key WTO agreement that governs international trade in services. It was established during the Uruguay Round and came into effect in 1995 alongside the WTO’s creation.

Services like Banks, tour operators, insurance firms, telecommunications companies, transport companies, hotel chains and those looking to do business abroad enjoy the same principles applied to trade in goods. These principles are mentioned in the General Agreement on Trade in Services (GATS).

Four Modes of Supply: The Four Modes of Supply under the GATS refer to the different ways through which services can be traded across borders:

1. Cross-Border Supply: Services are provided from one country to another without the need for the provider or consumer to move (e.g., online services).
2. Consumption Abroad: Consumers travel to another country to consume services (e.g., tourism).
3. Commercial Presence: A company sets up a presence (e.g., a branch or subsidiary) in another country to offer services.
4. Movement of Natural Persons: Individuals travel to another country to provide services (e.g., consultants or professionals working abroad temporarily).

Services negotiations in the WTO follow the discussions on the so-called positive list approach and the negative list approach. In the positive list approach, members list all of the services where they undertake to reduce tariff or non-tariff barriers. In the latter approach, trade barriers are maintained in services.

India’s instance on the GATS

India’s stance on the General Agreement on Trade in Services (GATS) is focused on leveraging its strengths, particularly in the IT and service sectors. India’s position on the four modes of service delivery under GATS is as follows: On Cross-Border Supply, India supports liberalisation that aligns with the country’s competitive edge in IT and outsourcing services. On Consumption Abroad, India has a more neutral stance, focusing on facilitating educational and medical tourism. On Commercial Presence India is cautious, seeking to balance the entry of foreign companies with the protection of domestic businesses. The Movement of Natural Persons is the most crucial for India. The country advocates for the liberalisation of Mode 4, as it allows Indian professionals to work abroad temporarily, especially in the IT and skilled labour sectors. This brings a significant amount of remittances and foreign currency into India. India has been pushing for greater liberalisation in Mode 4 but faces resistance from developed countries that are concerned about immigration and labour market impacts.

Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)

• The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is a binding agreement under the WTO that sets minimum standards for the protection and enforcement of intellectual property rights (IPR) globally.
• The Intellectual Property Agreement under WTO contains rules for trade in ideas and creativity, such as copyrights, geographical names used to identify products,  patents, industrial designs, trademarks, and trade secrets. These are called “intellectual property” that should be protected when trade is involved.

India and TRIPS: Issues related to Intellectual Property that India faces

Access to affordable medicine: Despite the 2003 revision of the TRIPS Agreement under the Doha Development Agenda, which allowed for compulsory licensing in certain cases, India continues to have concerns. India demands broader flexibility in how compulsory licensing can be implemented. Theft of traditional knowledge: India continues to advocate for stronger protections against biopiracy and better recognition of traditional knowledge, such as naturopathy and Ayurveda, which remains inadequately addressed under TRIPS. India has asked for:  Mandatory Disclosure: Patent applicants must disclose the origin of the biological resource used in their invention. Prior Informed Consent: Applicants must show evidence that they have obtained consent from the local communities or authorities. Benefit Sharing: There must be an agreement on sharing the benefits derived from the use of the resource with the source country or community.

Dispute settlement:

The WTO’s Dispute Settlement Mechanism (DSM) is a key feature that provides a structured process for resolving trade disputes between member countries. It is designed to ensure that trade flows smoothly and predictably by enforcing the rules agreed upon by members, and has the following features:

• Consultation: The first step is where disputing members try to resolve the issue through dialogue.
• Panel Proceedings: If consultations fail, a panel is established to examine the case and issue a report.
• Appellate Review: Parties can appeal the panel’s decision to the WTO’s Appellate Body.
• Implementation and Compliance: If a member does not comply with the ruling, the complaining country may seek compensation or impose retaliatory measures.

Issues in the Dispute settlement

Appellate Body Crisis:The WTO’s Appellate Body has been paralysed since 2019 due to the US blocking new appointments, raising global concerns about the effectiveness of the dispute resolution process. Without a functioning Appellate Body, the final stage of dispute resolution is effectively blocked. Delays in Resolution:Disputes often take longer than the intended timeframe, frustrating countries that seek timely resolutions. This delay has been exacerbated by the current Appellate Body crisis. Implementation Challenges: Some countries, including India, face challenges in implementing rulings, leading to prolonged trade conflicts. Bias Perception: Developing nations, including India, have raised concerns that the system favours developed countries, particularly in cases involving complex legal issues or where economic power influences outcomes. Complexity and Costs: The dispute settlement process is highly legalistic, making it difficult for smaller and developing countries to participate fully. India has advocated for reforms to make the process more accessible and fair.

Major Ministerial meet:

The Ministerial Conference is the trade forum’s highest decision-making body and is under the Marrakesh Agreement. It meets every two years and is attended by trade ministers and other senior officials of 164 member countries of the WTO.

Ministerial Round	Achievements
Singapore Ministerial Round– 1996	The first Ministerial Conference of WTO was held in Singapore in 1996. Discussions revolved around trade and investment, trade and competition policy, trade facilitation and transparency in government procurement. India stood for sovereignty rights that were being infringed upon due to multilateral agreements. The trade facilitation agreement highlighted the lack of resources in developing countries that match the developed countries.
Doha Ministerial Round-2001	This is the single most important round of WTO, but it ended in failure as the developed countries collided with the developing countries: Developed countries favoured the reduction of the tariffs and reduction of the number of import-sensitive products (products that are particularly sensitive to competition from imports from other country suppliers) and special products (that are exempt from the tariff cuts) On the other hand, developing countries were concerned about the special products that were exempted from the tariff cuts. They were also against the subsidy reduction because of the considerations of development, food security, and livelihood. India insisted on a large number of special products that would not be exposed to wider market opening. The discussion was held regarding the TRIMS with respect to the interest of the pharmaceutical companies of the developed countries that hold the patents for life-saving drugs and the interest of the poor people of the developing countries. In this aspect, member countries are allowed to export the compulsory licenses to least-developed countries and certain other members. It does not allow members to do evergreening (i.e. extending the life of patents without necessarily enhancing the drug’s therapeutic efficiency) of patents. Further, members agreed that developing and least developed countries would continue to enjoy favourable treatment, which is Special and differential treatment (SDT). Generalised System of Preferences is an example of S&DT. In this system, developed countries offer non-reciprocal preferential treatment (such as zero or low duties on imports) to products originating in developing countries.
Bali Ministerial Round-2013	In this round, the Bali Package was adopted, which included: Streamlining trade, Allowing developing countries more possibilities for providing food security and furthering least-developed countries’ trade. Trade facilitation was agreed upon by all nations, including investment in the infrastructure of import and export to simplify customs and reduce non-tariff barriers. A ‘peace clause’ was accepted. It gave a concession that no country would be legally barred from food security programs for its own people even if the subsidy breached the limits specified in the WTO Agreement on Agriculture. India initially refused to ratify the agreement; however, it was later signed after reaching an understanding with the US, in which the time limit of 4 years for the peace clause was removed and in return, trade facilitation was agreed to by India.
Nairobi Ministerial Round-2015	In this 10th Ministerial Conference, the “Nairobi Package” was adopted. Some decisions were taken as follows: A Special Safeguard Mechanism (SSM) for Developing Countries recognises that they will have the right to temporarily hike tariffs in the face of import surges by using an SSM. It made a decision regarding Preferential Rules of Origin. It necessitates that ‘Made in LDC’ products will get unobstructed access to markets of non-LDCs. There was an assertion that Regional Trade Agreements (RTAs) remain complementary to (not a substitute for) WTO. Developed countries insisted on the Trade facilitation issues and tried to denounce the Doha Development Agenda as outdated. India and other developing countries have taken strong objections to this.
Buenos Aires Round – 2017	In this 11th WTO Ministerial Conference, the discussion was held regarding: Eliminating fisheries subsidies by December 2019. India and China were reluctant to commit to a deal immediately on fisheries. Discussion on small economies and intellectual property. India hardened its stance on newer issues like e-commerce & investment facilitation.
Abu Dhabi Round 2024	The 13th Ministerial Conference of the WTO was held in Abu Dhabi in February 2024. Here India raised its voice against: The use of non–tariff barriers in the disguise of promoting Sustainability. For example,the EU is imposing CBAM (Carbon Border Adjustment Mechanism), a “carbon tax” on imports. It will come into effect on January 1, 2026, for seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium, and hydrocarbon products. Currently, 26.6% of India’s exports of iron ore pellets, iron, steel, and aluminium products go to the EU. The deforestation regulation by the EU will also affect trade. India’s exports of products like coffee, leather hides, and paperboard worth USD 1.3 billion annually to the European Union are likely to be impacted due to the deforestation regulation adopted by the EU in May 2023. Further, India raised several important Issues: India emphasised the urgent need to restore the non-functional Appellate Body, a key component of the Dispute Settlement (DS) system, which has been disrupted since December 2019. India raised the issue that negotiation of non-trade topics within the framework of WTO can lead to greater trade fragmentation. For example, bringing issues like MSMEs and gender into the realm of WTO discussions was not practical because these issues are already being discussed in other relevant international organisations. India raised its objection to the adaptation of the Investment Facilitation for Development (IFD) agreement at the WTO meeting. IFD agreement has binding provisions to facilitate investment flows. India’s concerns primarily revolve around whether investment should be part of the WTO framework. India claims that developed countries are trying to narrow down their trade deficit through their measures.

Activities of WTO:

WTO’s main activities are:

• Negotiating the reduction or elimination of trade restrictions like import tariffs and other barriers to trade such as rules on antidumping, subsidies and product standards that govern the conduct of international trade.
• Administering and monitoring the application of the rules for trade in goods and services and trade-related to intellectual property rights (IPR).
• Monitoring and reviewing the trade policies of our members and ensuring transparency of regional and bilateral trade agreements.
• Settling disputes among WTO members with respect to the interpretation and application of its agreements.
• Building capacity of government officials of developing countries in international trade matters.

Significance of WTO

WTO plays an essential role in the global economy by promoting free and fair trade among nations. Its significance can be assessed through the following key aspects:

1. Trade Liberalisation: Since its inception, the WTO and GATT have facilitated the reduction of trade barriers such as tariffs and quotas, thereby making international trade more accessible and efficient.
2. Consumer Benefits: WTO benefits consumers in two ways:
   1. The Product Destination Countries: Itenables consumers to access a wider range of goods and services at competitive prices by eliminating trade barriers, thereby enhancing consumer choice and welfare.
   2. At the Product Source countries: It reduces trade-distorting subsidies by producer nations so that the number of choices for the consumers always remains.
3. Global Economic Stability: Predictable and transparent trade policies are essential for global economic stability and growth.
4. Dispute Resolution: WTO provides a structured mechanism to resolve trade disputes between member countries.
5. Promoting Cooperation: The WTO fosters economic interdependence among nations, which contributes to international peace and cooperation by reducing conflicts.
6. Integration of Developing Countries: The WTO supports the integration of developing countries like India into the global trading system by offering special and differential treatment (S&DT), technical assistance, and capacity-building initiatives.
7. Adaptation to Modern Trade Issues such as digital trade, intellectual property, and environmental sustainability, ensuring that trade rules evolve with the changing global landscape.

In summary, the WTO is essential for ensuring a stable, transparent, and equitable global trading system that benefits economies worldwide. Its role in facilitating trade, resolving disputes, and adapting to new challenges makes it a cornerstone of international economic governance.

Issues in the WTO

WTO has hit a major roadblock in recent years.

1. Negotiation Deadlocks: The Doha Development Round, launched in 2001, has struggled to reach a conclusion, with disagreements between developed and developing countries on issues like agriculture, industrial tariffs, and non-tariff barriers.
2. Appellate Body Crisis: The WTO’s dispute resolution system has been hampered by the Appellate Body’s paralysis, primarily due to the US blocking new appointments since 2019. This has weakened the enforcement of trade rules.
3. Developing Countries’ Concerns: Many developing nations feel that the WTO’s rules and agreements disproportionately benefit developed countries, particularly in areas like intellectual property and agriculture, where they seek more flexibility and support.
4. Non-Tariff Barriers: Increasing the use of non-tariff barriers (NTBs), such as environmental regulations, by developed countries is seen as a disguised form of protectionism, which adversely affects the exports of developing nations, including India.
5. Global Trade Fragmentation: The rise of regional trade agreements and bilateral deals outside the WTO framework has led to concerns about the fragmentation of the global trading system, reducing the WTO’s relevance.
6. Problems with the Decision-making process: There is criticism that the WTO’s decision-making process lacks inclusiveness, as smaller and less developed countries often struggle to influence negotiations that are dominated by more powerful economies.

Way Forward:

1. Reforming the Appellate Body: Revitalise the dispute settlement mechanism by addressing concerns over the Appellate Body’s functioning, possibly through compromise solutions on appointment processes and operational transparency.
2. Concluding the Doha Round: Renew efforts to address the remaining issues in the Doha Development Round, focusing on balancing the interests of both developed and developing countries.
3. Addressing Non-Tariff Barriers: Create clearer guidelines to ensure that sustainability measures like carbon taxes do not become disguised protectionism.
4. Enhancing Inclusiveness: Strengthen the participation of smaller and developing countries in WTO decision-making processes, ensuring that their concerns are adequately represented.
5. Promoting Multilateralism: Encourage member states to prioritise WTO-led multilateral agreements over regional trade agreements, reinforcing the global trading system.
6. Special and Differential Treatment: Reinforce the principle of special and differential treatment for developing countries that allow them the flexibility needed to protect their agricultural sectors and ensure food security.

India’s Position

India has been vocal about the need to reform the WTO to address these issues, particularly focusing on:

• Restoration of the Appellate Body: India has consistently called for the restoration of the Appellate Body to ensure that the dispute settlement mechanism functions effectively.
• Non-Tariff Barriers: India has raised concerns over the use of NTBs under the guise of sustainability measures, such as the EU’s Carbon Border Adjustment Mechanism, which could harm its exports.
• Special and Differential Treatment: India advocates for retaining flexibility for developing countries like the public distribution system(PDS) to protect their agricultural sectors and ensure food security.
• Opposition to New Issues: India has opposed bringing non-trade issues like gender and MSMEs into the WTO discussions, arguing that these are better handled by other international organisations

By pursuing these reforms, the WTO can better adapt to contemporary challenges, maintain its relevance, and ensure a more equitable and effective global trading system.

Related FAQs of World Trade Organisation (WTO)

1. What led to the formation of the WTO, and how is it different from GATT?

The WTO was formed in 1995 as a result of the Uruguay Round (1986–94) to address the shortcomings of GATT, which was only a provisional arrangement without enforcement power. While GATT focused only on trade in goods, the WTO covers goods, services, intellectual property, and has a binding dispute settlement mechanism.

2. What are the six major agreements under the WTO’s ‘Final Act’?

The six foundational agreements include: (1) Agreement on Trade in Goods, (2) GATS (services), (3) TRIMS, (4) TRIPS, (5) Dispute Settlement Understanding (DSU), and (6) Trade Policy Review Mechanism (TPRM). Together, they form the legal and institutional framework of the WTO.

3. What is India’s stance on key WTO issues like agriculture, services, and dispute settlement?

India defends its food security programs under the AoA, seeks liberalization in Mode 4 of services (movement of professionals), and supports restoring the WTO Appellate Body. It also opposes NTBs like the EU’s Carbon Border Tax and insists on Special and Differential Treatment (S&DT) for developing countries.

4. How does the WTO’s Dispute Settlement Mechanism (DSM) work, and why is it currently facing a crisis?

The DSM includes consultations, panels, appellate reviews, and enforcement. However, the Appellate Body has been non-functional since 2019 due to the US blocking new appointments. This undermines the WTO’s ability to enforce rules, leading to a backlog of unresolved disputes.

5. What were the key outcomes of India’s participation in recent WTO Ministerial Conferences?

In Bali (2013), India secured the ‘Peace Clause’ for food security. In Nairobi (2015), it pushed for the Special Safeguard Mechanism (SSM). In Abu Dhabi (2024), India opposed EU’s NTBs like CBAM, resisted adding investment facilitation to WTO, and called for Appellate Body reform and protection of domestic policy space.