Q2.What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India?

The World Trade Organization (WTO) faces an existential crisis amidst rising protectionism and 'trade wars'. Reforming it is crucial for its survival and continued relevance in fostering a rules-based multilateral trading system, especially considering India's strategic interests.

Addressing Institutional Challenges

• Dispute Settlement Mechanism (DSM): Urgent reform is needed to resolve the Appellate Body crisis, restoring its binding, two-tier, and effective function to uphold the rules-based order.
• Transparency and Notification: Enhance requirements for members to submit timely and complete notifications, fostering greater trust and enabling better monitoring of trade policies.
• Negotiating Function: Strengthen the WTO's ability to negotiate new rules and update existing ones, effectively addressing modern protectionism and non-tariff barriers.

Incorporating New Realities & India's Interests

• New Issues: Develop balanced rules for emerging areas like e-commerce, investment facilitation, and digital trade, ensuring they do not disadvantage developing countries like India.
• Special and Differential Treatment (S&DT): Revisit S&DT provisions to protect the policy space for developing countries, while addressing concerns over self-declaration criteria without undermining the principle.
• Agriculture Reforms: Push for significant reductions in trade-distorting domestic subsidies (e.g., Amber Box) by developed nations and improve market access. This is crucial for India's food security, supporting its vast farming population, and protecting public stockholding programs.

A reformed WTO, with a robust DSM and responsive agenda, is vital for global trade stability and prosperity. For India, it ensures a level playing field, safeguards developmental interests, and promotes equitable economic growth.