For much of the late 20th and early 21st c., WTO functioned as the central pillar of global commerce, offering a rules-based framework that promised neutrality, predictability and fairness. Today, that promise appears fragile, thanks to structural imbalances, uneven enforcement and changing dynamics of global economic power.
At the heart of this crisis lie hyper-concentration of global production and persistence of predatory trade practices. Over time, supply chains have become interdependent, yet unevenly distributed, with a handful of dominant economies exercising disproportionate control over critical sectors.
While this concentration has made global supply chains more efficient in some instances, it has also made them more vulnerable. Disruptions carry systemic consequences. As a result, supply-chain fragility is no longer viewed as an economic concern, but is framed as a matter of national security and economic survival.
At the recent ministerial conference in Yaounde, Cameroon, members reaffirmed their commitment to WTO's foundational principles. But a shift in perception has triggered a wave of policy responses that challenge these principles. While protectionist measures, aggressive industrial policies and export controls may yield short-term resilience, they undermine WTO's cooperative spirit and legal framework.
Growing use of technological choke points, control over critical supply chains, and market access as instruments of geopolitical leverage signal a broader transformation: trade is no longer just about economic exchange but also about strategic power.
A widely held view among WTO members is the organisation's inability to hold major economies accountable to their commitments. For many countries, particularly in the 'global south', this has reinforced perceptions that WTO no longer functions as an impartial arbiter.
In this context, restoring WTO's credibility has become central to reform efforts. Foundational agreements are seen by many as a pragmatic solution to challenges of consensus-based rule- making. In a membership characterised by vast disparities, achieving unanimity on complex issues is difficult.
While acknowledging the potential of plurilateral agreements to advance rule-making without being held back by those not ready to commit, India has called for robust safeguards to ensure that such arrangements don't undermine multilateralism. It advocates for a comprehensive approach to integrating plurilateral agreements into WTO architecture, rather than an ad-hoc, agreement-by-agreement model.
Also, WTO's failure to deliver on past mandates is a major source of dissatisfaction for developing countries. These unfulfilled commitments - spanning areas like agriculture, development and special treatment provisions - represent not just gaps in rule-making but also missed opportunities to address inequities in the global trading system.
Agriculture Developed countries continue to retain significant flexibility in providing subsidies to their farm sectors. At the same time, developing countries face constraints on types and levels of support they can offer to their farmers. This asymmetry perpetuates structural disadvantages, undermining livelihoods of millions in the 'global south' and distorting global trade flows.
Tech There is a growing demand for more equitable frameworks governing technology transfer and capacity building. Yet, existing rules often reinforce existing hierarchies, limiting the ability of developing countries to move up the value chain.
Special & Differential Treatment Originally designed to provide least developing and developing countries with non-reciprocal market access and greater flexibility in implementing trade commitments, S&DT has become a contentious issue. Some developed countries argue that the current system of self-designation allows relatively advanced economies to continue benefiting from provisions intended for less developed nations. India cautions against simplistic solutions based on arbitrary metrics such as aggregate economic size.
Instead, focus should be on ensuring that S&DT remains an effective tool for addressing genuine developmental needs. This requires a more nuanced approach, one that recognises the diversity of economic conditions within the developing world and tailors flexibilities accordingly.
India's broader trade strategy combines engagement in multilateral forums with the pursuit of bilateral and regional agreements. As trade policy becomes increasingly complex - encompassing regulatory standards, digital governance and supply-chain integration - FTAs have emerged as important tools for deeper economic integration.
However, by advocating for balanced, inclusive and forward-looking reforms, India seeks to ensure that WTO remains relevant in a rapidly changing world. More than anything else, WTO provides certainty, predictability, inclusivity, equity and simplicity to businesses - a rules-based trading order.
The writer is commerce secretary, GoI
