India appeals for a functional WTO dispute settlement system

India on Thursday called on World Trade Organization (WTO) member countries to work towards making the dispute settlement system fully functional, saying it is currently inactive, depriving countries of effective dispute resolution. 

Speaking on the first day of the 14th Ministerial Conference (MC14) of the World Trade Organization (WTO) in Yaoundé, Cameroon, Commerce and Industry Minister Piyush Goyal said the extension of customs duty restrictions on e-commerce trade needs to be carefully reconsidered.

He said that a dysfunctional dispute settlement system has deprived member countries of the opportunity to effectively resolve disputes. We must restore the automatic and binding dispute settlement system. 

The WTO's dispute settlement system has not been functioning properly since 2009 because the United States has obstructed member countries' appointments to the Appellate Body.

Highest decision-making body

World Trade Organization (WTO) member countries have agreed not to impose customs duties on electronic transmissions since 1998. This moratorium has been extended periodically at Ministerial Conferences (MCs). 

The WTO Ministerial Conference is the highest decision-making body of the 166 member states. India has repeatedly stressed the need to discuss the scope of the customs duty moratorium, given its revenue implications.

four-day ministerial conference

The four-day ministerial conference will conclude on March 29. 

He said that in the absence of consensus among members on the scope of the moratorium on customs duties on electronic transmissions and given its potentially significant implications, the continued extension of the moratorium requires careful reconsideration.

A permanent solution is long overdue

On WTO reforms, the Minister said that necessary reforms should be undertaken through a transparent, inclusive, and member-driven process, placing development at the center and upholding fundamental principles such as non-discrimination, consensus-based decision-making, and equity. 

On agriculture, Piyush Goyal said that public stockpiling for food security purposes, special safeguard measures, and a permanent solution to cotton are long-pending issues that member countries should prioritize.

Negotiations on the Fisheries Subsidy Agreement

He said India is committed to negotiating a comprehensive fisheries subsidies agreement that balances current and future fishing needs, protects the livelihoods of poor fishermen, and implements appropriate and effective control and transition measures. 

Goyal said the incorporation of multilateral outcomes into the World Trade Organization (WTO) framework should be based on consensus.

WTO, the center of global trade

The Minister said, "We will continue to work constructively to ensure that the WTO remains the center of global trade. 

We will strive to reform it so that it remains accountable, is able to meet the goals of development, equity and inclusion, and, based on consensus and multilateralism, better serves the interests of the poor, vulnerable and marginalized."