GS Analyst: Daily Current Affairs

Context

The latest meeting of the World Trade Organization’s (WTO) Ministerial Conference (MC13) concluded with limited progress on critical issues affecting global trade, highlighting challenges faced by the WTO amid evolving global trade dynamics and increasing protectionist tendencies among nations.

Limited Progress and Challenges:

• No significant outcome: Despite extending deliberations, the MC13 in Abu Dhabi failed to achieve significant outcomes, reflecting ongoing challenges within the WTO.
• Disruptions:Global trade has been impacted by conflicts, disruptions in shipment routes, and shifts in supply chains, contributing to an environment of uncertainty and protectionism.
• Need for resilient supply chains:The declaration from the MC13 acknowledges challenges such as the need for resilient supply chains but lacks concrete measures to address them effectively.

Persistent Divergences and Some Progress:

• Divergences on agriculture and subsidy: Divergences among WTO member countries persisted on key issues carried forward from previous conferences, including agriculture and fisheries subsidies.
• Dispute over custom duties:While agriculture discussions have seen some progress with the emergence of a text for future negotiations, disputes over customs duties for e-commerce continue.
• Retaining space for sensitive sectors:India succeeded in preventing the introduction of an investment facilitation pact into the WTO framework, emphasizing the importance of retaining policy space for sensitive sectors.

Calls for Reform and Renewed Relevance:

• Challenges:The WTO faces challenges in remaining relevant amidst increasing polarization and skepticism among members.
• Need of reforms:Efforts to revive the WTO’s dispute resolution body remain uncertain, highlighting the need for institutional reform to strengthen the organization.
• Urgency to address trade issues:The MC13 outcome underscores the urgency for the WTO to address emerging trade issues effectively and regain confidence as a facilitator of open, inclusive, and rules-based global trade.