A special regime for emerging markets is non-negotiable: Goyal at WTO

16 Jun 2022 , 03:00 PM

Special and differentiated treatment (S&DT) clauses offered to develop countries in all World Trade Organization (WTO) accords are a non-negotiable topic for rising economies, according to Union Commerce and Industry Minister Piyush Goyal.

“The inequalities between developing and developed members have not shrunk in decades; in many instances, they have grown.” As a result, S&D clauses remain important,” Goyal stated at the WTO’s 12th Ministerial Conference (MC12) in Geneva during a theme session on WTO changes.

“India firmly supports a balanced and inclusive WTO reform and modernization agenda that retains the present multilateral system’s essential foundations,” he added.

Developed nations believe that developing countries are circumventing WTO regulations in the sake of claiming development status. Developing countries like India have demanded unique and differentiated treatment.

“We must prioritise reform demands, particularly the problem at the appellate body, whose operation must become more open and effective,” the minister stated.

The appellate body is a permanent panel of seven people that considers appeals from reports made by panels in WTO member disputes. Due to unfilled vacancies, the appellate body is currently unable to examine appeals.

The tenure of the final remaining member of the appellate panel terminated on November 30, 2020. Developed countries have voiced concerns about the body’s operation and are seeking reforms.

The general council and its regular bodies, according to Goyal, should lead the reform process since they have the ability to act on behalf of the ministers, and reform debates should not be done with the goal of weakening the authority of the WTO’s current structures.