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WTO Relevance NOW
HOT ISSUES FOR MAINS(TOPIC #9)(SecureIas Initiative)
The World Trade Organization is the only international institution that oversees the global trade rules between nations. The WTO is based on agreements signed by the majority of the world’s trading nations. The main function of the organization is to help producers of goods and services, exporters, and importers protect and manage their businesses.
- Effectiveness of WTO is reducing because of various factors such as :-
a) Huge growth in bilateral and multilateral agreements like RECP, NAFTA, SAFTA, TPP etc which have their own rules and regulations for trade
b) Helplessness in the trade wars initiated between USA and China
c) Vacancy created in WTO dispute resolution process due to the blockage created by US in appointment of it members has further affect resolution power of the organisation and its credibility
d) The non implementation of its ruling by the countries like China and USA
e) Rise of protectionist policy among countries
f) Lack of any significant achievement even two decades post Doha round has reduced confidence of developing countries in it - Effect of above conditions on India
A)Impact on India’s export and import from trade barriers imposed by different countries
b) It can lost the benefits given to the developing countries under the pressure created by USA
c) Weakening of WTO will reduce bargaining power of India in multilateral agreements like RCEP as it will feel more pressurised to sign the same - Way forward to deal with WTO
a)India should Ally with like minded countries and create pressure on USA like countries to follow the WTO rules
b)It should aggressively pursue regional trade agreements like RCEP
c) Improve its own competitiveness by creating infrastructure providing skills etc
By: Sugam Bansal
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