Source: Tepid trade-offs: World Trade Organization continues to struggle to foster free and fair trade (The Hindu, March 5, 2024)
The 13th Ministerial Conference of the World Trade Organization (WTO) in Abu Dhabi concluded with limited progress on significant global trade issues. Despite extended discussions, the conference struggled to achieve substantial outcomes amidst challenging global trade dynamics.
Overview of MC13
- Limited Progress: The latest WTO meeting saw minimal advancement on key global trade issues, despite an additional day of deliberations.
- Challenging Expectations: Initial expectations were low, but the conference was seen as a critical opportunity for the WTO to address pressing trade rules and mandates.
Global Trade Shocks and Responses
- Significant Shocks: Recent conflicts and disruptions have impacted global trade routes and supply chains, prompting a shift away from reliance on single suppliers like China.
- Isolationist Policies: A rise in inward-looking trade policies contradicts the WTO’s goal of promoting open and beneficial trade for all members.
Persistent Divergences
- Unresolved Issues: Member countries continued to disagree on several topics carried over from the previous Geneva conference, including agriculture and fisheries subsidies.
- Agriculture Deliberations: After two decades, progress is noted in agriculture negotiations with a working text now available.
India’s Position and Wins
- E-commerce Duty Exemption: Despite India’s concerns over revenue impact, the exemption from customs duties for e-commerce will extend for two more years.
- Investment Facilitation Pact: India and South Africa blocked a China-led initiative to introduce an investment facilitation pact into the WTO, marking a significant win for India.
Future Challenges and the WTO’s Role
- Dispute Resolution Body: Efforts to revive the WTO’s dispute resolution mechanism remain uncertain, despite commitments to address the issue by 2024.
- WTO Relevance: The WTO faces challenges in maintaining its relevance in a divided world, highlighting the need for more substantial achievements beyond merely declaring meetings successful.