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India Proposes Terms for WTO Plurilateral Deals
Developing
In Short: India has offered a proposal to the World Trade Organisation (WTO) to advance talks on plurilateral agreements, softening its previous stance and seeking procedural safeguards.
India has proposed a framework for plurilateral agreements within the WTO, aiming to address concerns raised at the 14th Ministerial Conference in Cameroon earlier this year. The proposal, submitted to the WTO's General Council, seeks to ensure that such agreements do not erode foundational principles and functional limits of the WTO.
According to India, the proliferation of plurilateral initiatives could strain WTO resources and divert them from essential mandated uses, including technical assistance and capacity building. The country's Commerce and Industry Ministry stated, 'Hence, India did not agree to incorporation of the IFD into the WTO framework as an Annex 4 agreement. In view of the systemic issue at hand, India showed openness to first have good faith comprehensive discussions and constructive engagement under the WTO Reform Agenda.
Several developed countries, including Canada and the European Union, have opposed India's public stockholding programme, arguing that it distorts trade. The EU representative encouraged India to 'rethink its approach to plurilateral agreements' and to 'consider them as an opportunity to shape the agenda of the WTO and to modernise the organisation.
India's opposition to the Investment Facilitation for Development (IFD) plurilateral pact, which has garnered support from nearly 129 members, is rooted in systemic risks. India argues that investment is not a core trade issue and that such agreements could act against the interests of developing nations, including India itself.
India's proposal for plurilateral agreements includes identifying appropriate pathways for such initiatives into the WTO legal framework, particularly on development-oriented issues. The New Delhi Declaration, which includes BRICS members, recognises the importance of these pathways and the need to explore forward-looking rules in the WTO.
Despite India's concerns, the EU and other developed nations have expressed support for India's integration into global trade, citing its significant increase in world trade share over the past decade. Canada, in particular, has been vocal in opposing India's stance on plurilateral agreements, while the EU has encouraged India to engage constructively in the WTO Reform Agenda.
What's still developing
- Softening its stance, India said “common understanding” of safeguards for plurilateral initiatives can serve members and provide predictability.
- It indicated that as part of the body’s reform discussions, members are seeking guardrails and legal safeguards for plurilaterals before integration of any specific plurilateral outcome.
- The Indian Express last month reported that several countries targeted India during its trade policy review last month.
- Plurilateral trade agreements are negotiated and implemented by exclusive WTO groups rather than by all members.