What's Happening?
India's approach to the World Trade Organization (WTO) is under scrutiny as global trade governance undergoes significant changes. The WTO, once a stable platform for international trade negotiations, is now a contested space with members exploring new
coalitions and alternative rulemaking platforms. India's strategy at the WTO remains defensive, rooted in a mindset from the late 1990s that prioritizes policy autonomy and developmental interests. Despite changes in global dynamics, India continues to resist new negotiations on issues like investment facilitation, e-commerce, and digital trade. This stance contrasts with other developing countries, particularly in Southeast Asia, Africa, and Latin America, which are more open to engaging in plurilateral agreements. India's economic size commands attention, but it is not sufficient to halt the evolution of global norms, especially in sectors like clean technology and AI, where global integration is crucial.
Why It's Important?
India's current strategy at the WTO could have significant implications for its economic trajectory and global influence. By maintaining a defensive posture, India risks being sidelined in the development of new global trade norms. This could lead to a situation where India must comply with rules shaped by others, without having had a say in their formation. The pursuit of Free Trade Agreements (FTAs) with entities like the EU and UK is strategically important, but these cannot replace the benefits of a functioning multilateral system. If India continues to resist new WTO disciplines while agreeing to similar terms bilaterally, it may weaken its negotiating credibility. The risk is not just that WTO negotiations will proceed without India, but that rulemaking may shift to exclusive platforms where India lacks influence.
What's Next?
India faces a critical decision on whether to engage more actively in shaping global trade rules. A smarter strategy would involve participating in plurilateral agreements, using variable geometry to selectively engage in initiatives, and negotiating from a position of strength. As the WTO prepares for its 14th Ministerial Conference, India must decide whether to engage, shape, and lead in global trade governance or risk being marginalized. The evolving landscape of global trade governance presents both challenges and opportunities for India to amplify its influence and ensure its economic interests are protected.
