Recently EU chief, has proposed to EU leaders the launch of an initiative to establish trade cooperation with Asian countries .
WTO
- Establishment: 1 Jan 1995 (Marrakesh Agreement), replacing GATT (1948).
- Objective: Regulate international trade rules (only global org for this).
- Membership: 166 members (India = founding member), covers 98% of global trade.
- Governance:
- 1.Ministerial Conference (MC): Supreme body; meets biennially (Last: 13th MC in Abu Dhabi, Feb-Mar 2024).
- 2.General Council (GC): Highest decision-making body daily; also acts as:
- Dispute Settlement Body (DSB)
- Trade Policy Review Body (TPRB).
- 3.Secretariat: Headed by Director-General; administrative/technical support .Manages the WTO budget.
**II. Major Challenges **
- Dispute Settlement Paralysis: US blocking DSB judge appointments since 2019 → system non-functional.
- Unilateralism/Protectionism: E.g., US steel/aluminum tariffs (India retaliating via WTO rules).
- Doha Round Deadlock (2001-present): Stalled negotiations on development issues.
- Erosion of Core Principles:
- MFN (Most-Favoured-Nation) undermined by bilateral deals.
- "Developing Country" status disputes (e.g., US vs China/India).
- New Trade Issues: Inability to regulate digital trade, subsidies, climate-linked tariffs.
- Rise of Mega-Regional FTAs:
- CPTPP (US withdrew; now led by Japan/Canada)
- RCEP (China-led; India exited in 2019).
III. Current & India’s Role
- India’s Actions:
- Filing disputes vs. US at WTO (e.g., retaliatory tariffs on US goods after steel duty hike to 50%).
- Preparing for 8th Trade Policy Review (2024) despite WTO’s crises.
- EU’s Reform Push: Von der Leyen proposes CPTPP-EU alliance (2024) as potential WTO alternative.
- Key 2024 Event: 13th MC (Abu Dhabi) – focused on fisheries, e-commerce, dispute reform.