• The World Trade Organization (WTO) is the international organization that deals with trade between countries. Established in 1995 by the Marrakesh Agreement, WTO has replaced the General Agreement on Tariffs and Trade (GATT) concluded in 1948. 
• The organization currently comprises 166 members, including about 98% of world trade, and is based in Geneva. First and foremost, the WTO aims to ensure free and predictable trade by making international commerce as non-discriminatory, transparent, and equitable as possible.
•  In addition, the WTO provides a framework for member countries for negotiations on trade relations and dispute settlement mechanisms.

Principles of the WTO

The functioning of the WTO is based on the following principles:

• Non-discrimination: most-favored nation (MFN) and national treatment.
• Bound tariffs: restriction of trade by means of tariffs through their upper limits.
• Reciprocity: trade concessions granted by one country to another require reciprocal concessions.
• Trade liberalization: removing trade barriers by reducing tariffs.
• Transparency: WTO members must ensure openness in trade policy to facilitate trade.
• Dispute settlement: the WTO has appropriate mechanisms for the settlement of trade disputes.

Ministerial Conference and Other Issues

The Ministerial Conference (MC) is the highest decision-making organ of the WTO, consisting of representatives of member countries, which traditionally meet at regular intervals (about every two years).

Decisions are made at the Ministerial Conference by consensus.

Since its inception, the WTO has accomplished a lot, both in terms of trade liberalization and dispute resolution.

Some of the achievements of the WTO are as follows:

Achievements of the WTO

• Facilitating trade: establishing common rules for international trade allowed for the development of cross-border trade, and the volume of world trade has grown significantly since WTO’s inception.
• Reducing trade barriers: average tariffs have declined significantly since the establishment of the WTO.
• Facilitating value chains: together with trade liberalization, the predictability provided by the WTO agreements, as well as technological progress, has led to the expansion of production networks.
• Supporting developing countries: the WTO provides technical assistance to developing and least developed countries (LDCs) and recognizes their special status under the S&D Treatment (Special and Differential Treatment) provisions.
• Resolving disputes: the WTO has a dispute settlement mechanism that allows member countries to freely resolve trade disputes, which reduces the risk of unilateral action.
• Trade-related agreements: recently, the WTO has facilitated several agreements related to trade, such as the Trade Facilitation Agreement and the Agreement on Fisheries Subsidies, which demonstrates the organization’s ability to adapt to new problems.

Reasons for Criticism

The WTO was expected to fulfill three main functions: negotiation, adjudication, and monitoring.

However, all of them are now at risk due to various challenges.

• At the negotiating function, the main problem is the growing dissatisfaction of the United States with the WTO regime, as it increasingly contradicts U.S. interests.

In addition, China’s economic rise has led to the need to adjust the rules to take into account its needs.

• With regard to the adjudication function, recent trends in protectionism undermine the principle of non-discrimination and bound tariffs, while the deadlock in the WTO appellate system undermines confidence in the dispute resolution system.
• Finally, the monitoring function fails because consensus-based decision-making reduces the ability to respond to trade policy challenges.

Moreover, unilateral actions by states are growing, and WTO members are increasingly pursuing plurilateral rather than multilateral approaches to addressing trade issues.

Major Issues Facing the WTO

• Doha Round stalemate: the development of a new round of trade negotiations began in 2001 in Doha but failed to overcome major disagreements between developing and developed countries.
• Rising protectionism: trade liberalization is being undermined by protectionist trends around the world.
• North-south divide: developing countries are concerned about trade-distorting agricultural support in developed countries, while developing countries are reluctant to open their markets to imports.
• Rise of plurilateralism: WTO members are increasingly turning to regional and plurilateral approaches to trade liberalization.
• S&D Treatment disputes: disagreement between developing and developed countries about the special treatment of developing countries.
• New challenges: the WTO rules are being questioned in relation to e-commerce, the environment, and green subsidies.
• Limited LDC participation: LDCs are marginal players in international trade and suffer from the complexity of the WTO regime.

Issues Raised at the Ministerial Conference

The fourteenth WTO Ministerial Conference (MC14) was held in Yaounde, Cameroon, on March 26–29, 2026.

The WTO reform, which has become extremely relevant due to the difficulties in functioning, was the primary agenda item.

In addition, the conference examined such issues as electronic commerce, investment facilitation, dispute settlement mechanism, S&D Treatment, fisheries subsidies, agriculture, and trade and environment.

• WTO reform: reform of the dispute settlement mechanism, subsidies, and the issue of development were on the agenda of the WTO Ministerial Conference.
• E-commerce: the issue of granting most-favored-nation treatment for imports of electronic transmissions was discussed, although developing and developed countries have different views on this issue.
• Investment Facilitation: The Investment Facilitation for Development Agreement aims to facilitate investment and remove investment barriers to promote sustainable economic development.

India, South Africa, and some other developing countries oppose its adoption.

• Dispute settlement: reform of the WTO dispute settlement mechanism and the restoration of the Appellate Body are of great importance.
• S&D Treatment: there are disputes about the special treatment of developing countries, particularly large ones.
• Fisheries subsidies: the implementation of the Agreement on Fisheries Subsidies and the needs of developing countries and LDCs were discussed.
• Agriculture: India and other developing countries are striving to obtain permanent permission to implement public stockholding for food security purposes.
• Trade and environment: climate change, environmentally friendly goods and services, and green subsidies are becoming an important topic of discussion at WTO meetings.

India’s Concerns in the WTO

• India’s concerns in the WTO are related to food security, agriculture, trade in services, pharmaceuticals, trade issues, and development.
• First of all, India is concerned about the impact of trade liberalization on national food security.
• India adheres to the position of protecting its national interests within the framework of WTO rules.
• According to India, agricultural producers should be able to receive support through public procurement.
• Other concerns related to agriculture are the impact of import tariffs and export subsidies.
• In addition, India has a number of issues related to trade in services.
• Although India has a competitive advantage in IT and other sectors, there are problems with the free movement of professional workers and access to international markets.
• WTO rules on intellectual property, particularly the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement), have a considerable impact on India’s pharmaceutical sector.
• Moreover, India is concerned about technical barriers to trade, such as sanitary and phytosanitary regulations (SPS) and technical barriers to trade (TBT).
• A major concern for India is the plurilateral approach to trade liberalization.
• Due to the significant gap between developing and developed countries, India and other developing countries face challenges in negotiations.
• In addition, unequal economic power leads to asymmetry in bilateral negotiations.
• India’s proposals relate to ensuring a level playing field for developing countries, protecting their interests, and reducing the special position of developing countries.
• India has put forward several proposals regarding the reform of the dispute settlement mechanism, transparency, and other issues.

India’s Vision for Reform

India announced its “30 for 30” reform agenda, which includes proposals for reforming the dispute settlement system, increasing transparency, and other measures.

India’s Vision for Reform

• India must ensure its leadership in promoting a rules-based order at the WTO while safeguarding national interests.
• India must promote multilateral trade liberalization while protecting developing country interests.To do this, India can develop coalitions of the willing among developing countries at the WTO.
• India should continue to defend the principles of MFN, consensus decision-making, and S&D Treatment.
• At the same time, India should advocate for their reform if they interfere with trade liberalization.
• India should take a pragmatic approach to plurilateralism, participating in it only in those areas where it is beneficial to it.
• India must promote reform of the dispute settlement system and ensure the timely adoption of a dispute settlement restoration package.

India’s Priorities in the WTO

• India’s priorities in the WTO include food security, trade in services, agriculture, and pharmaceuticals. Ensuring food security is inextricably linked with farmers’ incomes, which are the foundation of the country’s economy.
• In addition, trade in services plays a vital role in India’s economic growth.
• Finally, the pharmaceutical industry is essential for India’s health security. India’s proposals on agriculture are designed to ensure food security.
• They include exempting India from tariffs on agricultural imports and relaxing restrictions on public grain reserves. At the same time, India is ready to lift restrictions on imports of certain farm products.
• India has several proposals to liberalize trade in services, remove restrictions on the movement of workers, and remove obstacles to trade in services.
• With regard to the pharmaceutical sector, India notes that the TRIPS Agreement should provide exemptions for local generic drug manufacturers.
• India’s vision for reforming the WTO focuses on restoring the dispute settlement system, improving the working methods of the WTO, and achieving consensus on key issues.
• India considers it necessary to adopt a reform program that would contain specific measures for improving the functioning of the organization within a limited period (one year).
• Such a unified text would help in developing a detailed action plan.
• In addition, India supports trade liberalization for developing countries within the WTO framework.
• India also advocates strengthening the technical assistance system for LDCs and developing countries.
• However, India is opposed to special treatment for developing countries, arguing that they should enjoy a general preferential regime.

Recommendations

To ensure the effective functioning of the WTO, it is necessary to adopt a few key measures:

1. Dispute Settlement Reform

For the WTO to be legitimate and effective, an authoritative and reliable dispute settlement system must be created.

2. Finding a Permanent Solution to the Indian Public Stockholding Issue

The dispute settlement system must consider India’s food security needs while respecting global trade rules.

3. Enhancing Support for Least Developed Countries

The WTO must strengthen technical assistance for developing and least developed countries.

4. Negotiating Rules for Emerging Issues

The WTO needs to develop new rules in certain areas, including e-commerce, digital trade, investment, and climate-related issues.

5. Developing a Roadmap for WTO Reform

The WTO needs a detailed action plan for reform.

Conclusion

The WTO plays a crucial role in international economic relations as the organization that ensures the rule-based international trading system.At the same time, the WTO faces serious challenges to its functioning, including protectionist trends, geopolitical tensions, and  weaknesses in the dispute settlement system.

The reform of the WTO is a priority, as without it, trade liberalization will be difficult to achieve. For India, the WTO is vital to enhancing trade, ensuring food security, supporting farmers, and ensuring the development of key sectors such as trade in services and the pharmaceutical industry.

Frequently Asked Questions (FAQ)

1. What is the WTO?

The WTO is the international organization that regulates world trade by establishing common rules for trade in goods, services, and intellectual property.

2. When was the WTO established?

The WTO was established in 1995 by the Marrakesh Agreement.

3. Where is the WTO located?

The WTO headquarters is located in Geneva.

4. What is the highest decision-making body?

The WTO’s highest decision-making body is the Ministerial Conference.

5. What are the principles of the WTO?

The principles include most-favored-nation (MFN) and national treatment, bound tariffs, reciprocity, trade liberalization, transparency, and dispute settlement.

6. Why is the WTO at a crossroads?

The WTO is at a crossroads due to challenges in negotiations, protectionism, geopolitical tensions, dispute settlement issues, and North-South contradictions.

7. Why is public stockholding important for India?

Public stockholding is vital for India because it ensures food security and supports farmers.

8. What is the Appellate Body?

The Appellate Body was the WTO’s judicial organ that heard disputes between member countries.

Due to a lack of judges, it has been unable to function since 2019.

9. What is S&D Treatment?

S&D Treatment refers to measures within the WTO framework that provide developing and least-developed countries with additional flexibility to promote their development.

10. What are India’s concerns in the WTO?

India’s concerns in the WTO include food security, trade in services, agriculture, and pharmaceuticals.