This comes in the backdrop of events like sweeping tariffs by US for over a year, EU’s carbon tariffs that threaten disrupt global supply chains, and introduce uncertainty.
Key Contentious Issues calling for Reform of WTO
- Reduced enforceability of WTO rules: Absence of an operational Appellate Body do not lead to binding outcomes allowing potentially WTO-inconsistent measures to be in place.
- Issues with Consensus-based governance: Decision-making by consensus has constrained the WTO’s ability to respond to new trade challenges like industrial subsidies, digital trade, etc.
- Controversial Issues: Practice of “self-designation” of developing country status has been questioned as these benefit from special and differential treatment (S&DT) provisions like longer implementation periods to comply with WTO commitments, etc.
Way Forward
- Plurilateral agreements: These should be explored to prevent problems of consensus by being inclusive and giving non-participating developing countries chance to benefit from rules.
- Digital trade and transformation: Rules need to be developed regarding the liberalization of e-commerce, e-services, and electronic payments to tackle issues taxation of digital services and regulation of trade-related data flows.
- Dealing with Trade barriers: Additional duties, export measures, and trade contingency measures like safeguards and anti-dumping duties should be consistent with WTO rules.
