India is gearing up for its eighth trade policy review at the World Trade Organization (WTO). Preparations are underway in the Ministry of Commerce, reflecting New Delhi’s commitment to a multilateral trading system under strain.
The last review was held five years ago. This time, it comes amid turbulence.
Multilateral institutions, once trusted, now face mounting criticism. The UN Security Council has become ineffective on many fronts. The WTO’s dispute settlement body has turned dysfunctional.
Yet India appears determined to stay engaged. Officials said the review will cover domestic reforms, export promotion, and regulatory changes.
Learn more about WTO trade policy reviews on the WTO website.
EU Chief Urges an Alternative to the WTO
In a development highlighting deep fissures in global trade governance, the European Union chief called for exploring an alternative to the WTO.
The EU argues that the WTO no longer functions effectively.
Trade disputes linger unresolved. Rule enforcement is weak. Developed and developing nations often clash over subsidies, tariffs, and market access.
An EU official stated:
“We need a robust mechanism to safeguard fair trade. If the WTO cannot deliver, Europe must consider alternatives.”
US Abandons WTO Dispute Forum
While India readies for its review, the United States has effectively abandoned the WTO’s dispute resolution forum.
Washington has blocked new appointments to the Appellate Body, paralyzing its function.
Instead, the US now prefers striking bilateral trade deals.
Experts warn that these deals often sideline multilateral norms. They risk creating a patchwork of agreements that may not comply with WTO rules.
A trade policy analyst observed:
“The US shift undermines the rules-based system. It creates uncertainty, especially for developing economies.”
India’s Position in a Shifting Trade Landscape
For India, this moment is critical.
India has historically defended a multilateral trading system. As a major developing country, it relies on fair and predictable rules.
India has frequently clashed with developed economies over agricultural subsidies, e-commerce regulation, and intellectual property rights.
Despite differences, India sees value in maintaining an inclusive forum.
The upcoming trade policy review will highlight India’s efforts to modernize trade facilitation, digitize customs, and improve ease of doing business.
Read about India’s past trade policy reviews here.
Why the WTO Still Matters for India
Experts say India cannot afford to ignore the WTO.
- The WTO provides a legal framework to resolve disputes.
- It ensures that powerful economies cannot impose arbitrary tariffs.
- It offers smaller economies collective bargaining power.
An official in the Ministry of Commerce explained:
“Our commitment to the WTO is strategic. It protects our farmers and industries from unfair practices.”
Risks of a Fractured Global Trade System
Analysts warn that a weakened WTO could fracture global trade. Countries could form exclusive blocs. Small exporters might struggle to access markets. For India, this scenario carries real risks.
Industries such as textiles, pharmaceuticals, and IT services depend on stable rules and open markets.
A senior economist from a Delhi-based think tank said:
“If the WTO collapses, India will face rising trade barriers. Dispute resolution will become political rather than rules-based.”
India’s Eighth Trade Policy Review: What to Expect
The eighth trade policy review will cover developments since the last assessment.
Focus areas include:
- India’s new Foreign Trade Policy.
- Efforts to simplify customs procedures.
- Export incentives and subsidies.
- Progress in digitization and e-commerce regulation.
The review will also look at India’s compliance with trade obligations.
Observers expect tough questions on subsidies, tariff structures, and market access barriers.
Calls for Reform and Modernization
While India remains committed to the WTO, many stakeholders agree that the organization needs reform.
Experts urge:
- Restoring the dispute settlement mechanism.
- Modernizing rules on digital trade.
- Addressing inequalities between developed and developing members.
India has supported discussions on reform but insists changes must protect developing countries’ interests.
The Road Ahead
As global trade shifts toward uncertainty, India’s preparations show a clear message:
The country believes in multilateralism, even if others waver.
India will present its record and plans before trading partners. It will also defend its right to protect critical sectors and ensure inclusive growth.
Experts say India’s stance could help preserve what remains of a rules-based global trading order.
Stay informed on India’s trade policy review and WTO developments at Ministry of Commerce.
In a world where multilateralism faces setbacks, India is choosing engagement over retreat.