Why India will be in focus at WTO this week

 

Why India will be in focus at WTO this week

As the World Trade Organization (WTO) gears up for its ministerial-level meeting beginning today in Abu Dhabi, India finds itself at the centre of a delicate balancing act, facing challenges from both China and the West. Let's delve into how India is strategically navigating these complexities. First, what’s the Chinese challenge? China leads a group of over 120 countries pushing for an agreement at WTO to simplify investment procedures for businesses. It wants an investment facilitation deal as a trade agreement under WTO. India opposes this, arguing that investment falls outside WTO's mandate. India maintains that plurilateral pacts within the WTO framework undermine multilateralism and could disadvantage developing nations in future negotiations. What does the West want? India’s challenges from the West are multi-faceted, ranging from OTT business to agricultural practices. Since WTO decisions are taken by unanimity, the West sees India as a blocker of economic reforms. Why this e-commerce dilemma Digital media providers like Netflix and Spotify have always enjoyed exemption from international taxes on their products transmitted over the internet. Such OTT giants are from Western countries and generate huge revenues for themselves and also the countries where they are based. This means a loss of revenue to countries like India, which provides the biggest consumer base for these products. What’s on India's agenda at WTO? Food security and agricultural reforms: Seeking a permanent solution for its minimum support price (MSP) programme, crucial for food security, India emphasises the need for public stock-holding. It also advocated for agricultural reforms that protect farmer livelihoods and ensure equitable market access. Inclusive WTO reforms: India supports reforms considering the interests of developing countries, including retaining key pillars like special and differential treatment and dispute settlement mechanisms. Addressing fisheries subsidies: Championing a balanced approach, India advocates differentiated responsibilities in curbing subsidies contributing to overfishing and overcapacity. New issues: India objects to bringing non-trade issues like labour and environment for discussion at WTO, arguing that there are separate forums for such discussions.