Emerging Issues Under WTO

While the World Trade Organization (WTO) negotiations on traditional areas, i.e., agriculture, manufacturing, services, dumping, subsidies, product standards etc. are on, there are several emerging concerns that can influence the pace of multilateral cooperation significantly. First, the dispute settlement body (DSB) of the WTO is considered to be the safety valve of the multilateral system. For smooth functioning of the WTO framework and securing compliance with the composite set of agreements, the DSB needs to deliver justice in a time-bound manner. While many cases have been fought since inception, the high cost of fighting a dispute has considerably limited their attraction for the developing countries. The intervention from the US on WTO Appalate Body functioning in recent years can therefore bear far-reaching consequences, given the dynamics of protectionist intent in general and the emergence of newer non-tariff barriers (NTBs) in the post-Covid period in particular. Second, the growth in E-Commerce can facilitate competition and lower price, which can in turn augment consumer surplus. The recent objection of several countries against further liberalization on this front and reversal of the ‘moratorium’ on application of customs duties with respect to electronic transmissions, needs to be viewed in the wider context of the recent growth and associated threat perception therein. Finally, the recent OECD guideline for securing a uniform 15 percent effective minimum tax on multinational enterprises from early 2024 onwards has been a welcome development towards enhancement of policy certainty.