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What is India's relationship with the World Trade Organization (WTO)?

27-Jun-2025
International Law

Answer By law4u team

India is a founding member of the World Trade Organization (WTO), and it plays a proactive and strategic role in shaping global trade policies. India uses the WTO as a platform to protect its national economic interests, promote development concerns, and advocate for fair trade rules, especially for developing and least developed countries. 1. Founding Member Status: India became a member of the WTO on 1 January 1995, the day it was established, and was earlier a member of its predecessor, the General Agreement on Tariffs and Trade (GATT) since 1948. As a founding member, India has been actively involved in the formulation and negotiation of various WTO agreements. 2. Key Principles India Supports in WTO: Special and Differential Treatment (S\&DT): India advocates for greater flexibility for developing countries in implementing WTO commitments. Agricultural Subsidies: India supports the right of developing countries to provide subsidies to farmers for food security and rural development. Protection of Public Stockholding Programs: India is a strong proponent of safeguarding food procurement and distribution programs under the National Food Security Act, arguing that these do not distort global trade. Opposition to Unequal Market Access: India often resists pressure to fully open up its markets, especially in agriculture, services, and e-commerce, citing the need to protect domestic industries and livelihoods. 3. Role in WTO Negotiations: India has been a vocal participant in all major WTO rounds, especially: Doha Development Round: India strongly supports this initiative aimed at addressing the concerns of developing countries. Bali and Nairobi Ministerial Conferences: India played a key role in ensuring the continuation of food security subsidies and pushed for a permanent solution. India often forms alliances like the G33, G20, and Like-Minded Developing Countries (LMDC) to present a united front with other developing nations. 4. Disputes and Compliance: India has been both a complainant and a respondent in several WTO dispute settlement cases, such as: India–Solar Panels case (filed by the USA), India–Export Subsidies case, India–Agricultural Products case (against the USA). India respects the WTO’s dispute settlement mechanism and generally complies with its rulings, while also defending its domestic interests. 5. Emerging Issues: India has shown caution in WTO discussions on: E-commerce regulations, fearing digital colonialism. Investment facilitation, which could limit national regulatory freedom. Trade and environment, where India supports sustainable goals but resists green protectionism by developed nations. Summary: India's relationship with the WTO is rooted in its commitment to multilateralism, equitable global trade, and protection of development goals. While supporting trade liberalization, India consistently emphasizes the need for fairness, sovereignty, and space for developing countries to safeguard their economies and vulnerable populations.

Answer By Ayantika Mondal

Dear Client, India has been a founding member of the World Trade Organization (WTO) since its establishment in 1995 and was a member of the General Agreement on Tariffs and Trade (GATT) earlier. India considers the WTO to be a useful forum for gaining reasonable trade rules that consider the needs of developing countries such as India. India is an active player in negotiations and is frequently a vocal leader among developing countries. It advocates for special consideration for less developed countries, equitable rules of trade in agriculture, and safeguarding of its food security initiatives.India has also employed the WTO's system of settlement of disputes to advance its trade interests by bringing and defending a number of cases, including those on solar panels and steel tariffs. Simultaneously, India tends to be resistant to pressure from developed nations to open up its markets too rapidly, particularly in sensitive areas such as agriculture and services. India favors reforming the WTO to enhance its fairness and inclusiveness but is cautious about whatever changes could depreciate the interests of developing nations. I hope this answer helps. In case of future queries, please feel free to contact us. Thank you.

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