{"id":32924,"date":"2018-10-29T17:31:35","date_gmt":"2018-10-29T12:01:35","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=32924"},"modified":"2018-10-29T17:31:35","modified_gmt":"2018-10-29T12:01:35","slug":"wto-nations-arrive-at-a-crossroads","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/wto-nations-arrive-at-a-crossroads\/","title":{"rendered":"WTO: nations arrive at a crossroads\u00a0"},"content":{"rendered":"

WTO: nations arrive at a crossroads<\/a>\u00a0<\/strong><\/p>\n

Context<\/strong><\/p>\n

\u2018India will have to quickly forge a grand alliance to protect interests and prevent mayhem\u2019<\/p>\n

Trump poses problems<\/strong><\/p>\n

According to multiple sources, the Trump administration reneged at the last minute on an earlier commitment by the U.S., and instead sought many onerous conditions \u2014 in proposed WTO norms relating to public stockholding of food grains \u2014 that developing countries could not accept as binding rules.\u00a0<\/strong><\/p>\n

No token declaration<\/strong><\/p>\n

The latest meeting ended without even the token Ministerial Declaration mainly due to the Trump administration, leading 40-odd nations to question the centrality of \u2018development\u2019 (improving the trading prospects of the \u2018developing nations\u2019) in the multilateral trading system as envisaged in the ongoing Doha Round.<\/p>\n

TPP withdrawal<\/strong><\/p>\n

In January, the Trump administration withdrew from the Trans-Pacific Partnership, a mega-regional free trade agreement signed by the Obama administration along with 11 other nations.<\/p>\n

Favors Bilateralism<\/strong><\/p>\n

With such startling moves, the Trump administration has given further credence to the notion that it favours bilateralism over multilateralism, and protectionism over free trade.<\/p>\n

Against continuity of policies<\/strong><\/p>\n

It has also signalled that it would not hesitate to take decisions that upset the continuity of or consistency with earlier U.S. policies.<\/p>\n

Blocked appointment of judges<\/strong><\/p>\n

In a much criticised stand, the Trump administration decided to block the appointment of judges to the WTO\u2019s Appellate Body, under the Dispute Settlement Mechanism (DSM) on grounds including that the U.S. was losing far too many cases \u2014 something that many have contested.<\/p>\n

This amounted to holding the DSM hostage and undermining the mechanism.<\/p>\n

Credibility affected<\/strong><\/p>\n

When biennial WTO Ministerial Conferences (MC) end in a deadlock like what was seen in Buenos Aires, it affects the credibility of the multilateral rule-based trading system<\/p>\n

\u2018Sanctity of talks\u2019<\/strong><\/p>\n

Jayant Dasgupta, former Permanent Representative of India to the WTO, referred to the failure in finding a permanent solution to the issue of public stockholding and said by not adhering to the commitments made by a previous (U.S) administration, the Trump administration was setting a dangerous precedent.<\/p>\n

\u00a0<\/strong>Trump administration\u2019s view<\/strong><\/p>\n

Meanwhile, the Trump administration refused to see the talks as a failure. Soon after the Buenos Aires meet, U.S. Trade Representative Robert Lighthizer said\u201dThe fact that one WTO Member with an extreme position chose to block a short Ministerial Declaration expressing shared views is no reflection on the excellent work of Minister Malcorra or her team.\u201d<\/p>\n

India<\/strong><\/p>\n

The strong position of one member against agricultural reform based on current WTO mandates and rules, led to a deadlock without any outcome on agriculture<\/p>\n

Conflicting views<\/strong><\/p>\n