Hurdles of Fair Global Trade

In Context of WTO 13th Ministerial Conference (MC13)
The World Trade Organization (WTO) held its 13th Ministerial Conference (MC13) in Abu
Dhabi in the UAE, which was attended by 166 member countries.
The members resolved “to preserve and strengthen the ability of the multilateral trading
system, with the WTO at its core, to provide meaningful impetus to respond to current trade
challenges, take advantage of available opportunities, and ensure the WTO’s proper
functioning”.

What are key decisions?
The Ministers took several decisions, like:
1. Including renewing the commitment to have a fully and well-functioning dispute
settlement system by 2024.
2. To improve the use of the special and differential treatment (S&DT) provisions for
developing and least developed countries (LDCs).
3. The relative levels of development among the richer nations and the LDCs have also
focussed attention on the need to ensure Norms do not adopt a ‘one-size-fits-all’
approach.

Challenges in Multilateral Trading
Some of the biggest challenges to the multilateral trading order have come from an
increasingly vocal movement across different countries, particularly in developed economies,
that seeks to turn inwards and move away from a globalized and relatively harmonized-tariffs
approach to World Trade.
1. Sanctions that some states have applied to others over the ongoing conflicts.
2. Sanctions have threatened supply chains and the smooth flow of goods and services
worldwide.
3. There needs to be more disagreement with the developed world over procurement
prices of food grains.

India’s Approach to Deliberations
A key concern for India pertains to the Public Stock Holding (PSH) program which is a vital
tool for the Indian government to decide MSP prices that are higher than the prevailing
market rates. However, a member nation’s food subsidy bill should not exceed 10% of the
value production under WTO Norms. Developed nations contend that these kinds of
programs distort global trade in food grains.

Other key concerns are related to the fisheries sector and a moratorium on customs duties
on e-commerce trade. On e-commerce, India consistently seeks an end to the moratorium in
place since 1998 on their ability to levy customs duties on cross-border e-commerce. India
has argued that this undermines its ability to generate revenue from global trade.

Conclusions
On the agriculture front, Even though there are challenges, this was the first time that there
has been a text. And on the fisheries front, a consensus accord now appears close to
reaching fruition by mid-year.
However, disappointingly for India, the exemption from customs duties for e-commerce will
continue for at least two more years.