Time for reforms in WTO, say experts

Vijay C Roy

Tribune News Service

Pune, February 29

The global trading system — with the World Trade Organisation (WTO) at its heart — is facing a challenging moment and rules need to be restricted to fixing what is broken, said JS Deepak, India’s Ambassador to WTO at Asia Economic Dialogue on Asia and the Emerging International Trading System organised by the Ministry of External Affairs and International Centre, Pune.

According to experts, some major WTO functions, like administering multilateral trade rules, serving as a forum for trade negotiations and providing a mechanism to settle trade disputes, is under pressure and needs reform. Also, mounting business concerns on slowdown across Asia and signs of slippage to recession have been triggered by rising protectionism, increased public skepticism on the merits of liberalisation and doubts on the benefits of globalisation, in particular the US-China trade war.

So, a new WTO should be ushered in without diluting the basic principles of consensus-based decision-making and concerns of all member countries should be accommodated. “The outcome of reform should be based on the emphasis given on development and inclusivity and also preserving the core values of the multilateral trading system. Further, decision-making should be based on consensus,” Deepak said.

“Also, in case of disputes, there should be two-tier impartial and automatic dispute settlement system and a bulwark against unilateral measures,” he added. India and the US have had differences on bilateral trade issues.The session was chaired by Dr Urjit Patel, former RBI Governor.

“Trade has to promote growth and welfare, and serve development. It must accelerate economic growth,” Lakshmi Puri, Deputy ED, UN Women, emphasised.