( Source – GeeksfromGeeks)

Recently the World Trade Organisation ( WTO ) talks did not agree on key issues like Farm subsidies and Public food stockholding. This is a big deal for global trade and India’s farming. You have to look more in-depth at why these talks didn’t work out, what it means for Indian farming, and how it affects global trade and development.

Let me tell you first the Backdrop and Context:

The WTO talks were meant to sort out issues such as India’s food stockholding program. This Programme helps to ensure poor people get food by buying from farmers at a fixed price. But some countries show concern this might mess up the market. There is also a fishing problem, so you need rules to fix that too. But the talks could not conclude. It seems how hard it is to talk about trade fairly.

In Simple language, the WTO talks couldn’t agree on India’s food program or how to stop overfishing. Some countries show concern about India’s program they think that India’s program might make prices unfair. Other countries don’t want to cut down on fishing, it is very difficult to make money and protect the environment.

What are the main reasons?

1. Divergent Interests: The member countries have different priorities and interests, making it hard to find common ground.Some countries prioritize market access and reducing subsidies, while other countries focus on protecting their domestic industries and ensuring food security for their population.
2. Complex Negotiations: Negotiating trade agreements involves balancing economic interests, environmental concerns, and social welfare goals. Finding consensus on issues like agricultural subsidies and fisheries management requires navigating complex trade-offs and compromises.
3. Power Imbalance: You should know that development countries often have more influence and bargaining power in WTO negotiations, leading to unequal outcomes that may not adequately address the needs of developing countries.
4. Political Considerations: Domestic politics and pressure from special interest groups can influence countries’ negotiating positions, making it difficult to reach agreements that are in the best interest of all parties involved.
5. Lack of Trust: Historical grievances and mistrust between member countries can hinder cooperation and compromise, leading to deadlock in negotiations.
6. Procedural Challenges: WTO decision-making processes can be slow and cumbersome, making it hard to make timely progress on complex issues.

You should know the Implications for India’s Agriculture sector and Food security:

If the WTO doesn’t agree on India’s food program, it could hurt poor people who rely on it.Also if you don’t stop overfishing , it could harm fisherman who depends on the sea for a living, india needs to find a way to help its people without upsetting other countries.

What would be the Broader Implications for Global Trade Governance and Development?

When the WTO, talks fail, it makes people wonder if it can seriously solve big issues or problems. Developing countries feel disappointed because they need help with things like farming and trade. So it is better to discuss these issues.

Question Answer that might pop up in your mind

1. What is the main goal of the WTO?

• The main goal of the WTO is to lower trade barriers and promote non-discrimination in global trade.

1. How does the WTO achieve its goals?

• The WTO achieves its goals through negotiation of trade rules and settlement of disputes among member countries.

1. What are some benefits of the WTO’s global system?

• Benefits include reduced production costs, lower prices of goods and services, increased choice, and ultimately, a lower cost of living.

1. How does the WTO stimulate economic growth and employment?

• By reducing barriers to trade and cutting the cost of doing business internationally, the WTO helps stimulate economic growth and create jobs.

1. How does the WTO contribute to good governance?

• The WTO promotes transparency and reduces arbitrariness in trade policies, thereby encouraging good governance and reducing opportunities for corruption.

1. What role does the WTO play in supporting development?

• The WTO believes that more open trade can boost economic growth and help countries develop, and its agreements include provisions to address the interests of developing countries.

1. How does the WTO give a voice to smaller countries?

• Through agreed rules, consensus decision-making, and coalition building, smaller countries have a stronger voice in negotiations and can influence outcomes.

1. What is the significance of the WTO in supporting the environment and health?

• The WTO aims to ensure that trade supports important goals like environmental protection and public health, without using them as excuses for protectionist measures.

1. How does the WTO contribute to peace and stability?

• By discouraging protectionism and promoting predictability in trade policies, the WTO helps stabilize the world economy and build confidence among nations.