UPSC CSE 2026 Essay Paper Discussion
GS Paper 2 15 marks · 250w 14 min Hard

What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India?

Subtopic: International Relations · WTO reform and multilateral trade governance

Model answer outline

How to structure your answer

Introduction (tariff wars plus Appellate Body paralysis threaten WTO's survival) → reform areas with India's stakes: dispute settlement restoration, S&DT preservation, public stockholding, disciplining unilateralism and green protectionism, fisheries subsidies, e-commerce moratorium, consensus versus plurilaterals → Conclusion: coalition-led, development-centred reform
Full model answer

Written within the word limit

285 words · target 250 words · 14 min

Tit-for-tat US–China tariffs, national-security duties and the paralysis of the Appellate Body since December 2019 — the US blocking appointments — have pushed the WTO towards irrelevance. MC12 (2022) promised a fully functioning dispute settlement system by 2024; MC13 (Abu Dhabi, 2024) could not deliver. With members increasingly settling disputes through bilateral pressure rather than in Geneva, reform is now existential — and India has concrete stakes in each area.

Key Areas of Reform

  • Restore binding two-tier dispute settlement: appeals currently vanish 'into the void'; India, a frequent litigant that has stayed out of the interim MPIA, needs enforceable rulings against arbitrary tariffs.
  • Preserve special and differential treatment and self-designation of developing-country status, which the US seeks to curtail through 'graduation' criteria — central to India's policy space.
  • A permanent solution on public stockholding for food security: India's MSP-backed procurement rests on the Bali (2013) peace clause, which India has had to invoke for rice; the G33 demand must be settled.
  • Discipline unilateralism and green protectionism: Section 232-style security tariffs and carbon border measures such as the EU's CBAM, which India calls disguised protectionism contrary to CBDR.
  • Balanced fisheries subsidies rules that protect small artisanal fishers while historical subsidizers bear deeper cuts.
  • Review the e-commerce moratorium on customs duties on electronic transmissions — a recurring revenue loss for developing countries that India and South Africa have sought to end.
  • Defend consensus-based decision-making against plurilateral Joint Statement Initiatives whose legal status India contests.

Conclusion

A weakened WTO hurts a rules-dependent, non-hegemonic trader like India most. India should build issue-based coalitions — G33, the Africa Group, like-minded developing countries — to push reform that restores enforceability while keeping development at the organization's core, even as it hedges through bilateral trade agreements: multilateral rules remain India's best shield against tariff wars.

Key points

What an examiner expects to see

  • Diagnose the crisis precisely: Appellate Body defunct since December 2019 due to US blocking of appointments; unilateral tariff wars bypassing WTO rules; MC12 pledge of a functioning dispute settlement system by 2024 unmet at MC13 (2024).
  • Dispute settlement restoration is India's first-order interest: appeals 'into the void' neutralize wins; India is not an MPIA member.
  • Defend S&DT and self-designation of developing-country status against US-led graduation proposals.
  • Permanent solution for public stockholding: Bali peace clause (2013) is only an interim shield for MSP-based procurement; India has invoked it for rice.
  • Discipline unilateral and 'green' measures — Section 232 security tariffs, EU CBAM — as disguised protectionism.
  • Fisheries subsidies: protect artisanal fishers, demand asymmetric cuts from historical subsidizers.
  • E-commerce moratorium on electronic transmissions costs developing countries customs revenue — India–South Africa position for review.
  • Process reform: preserve consensus decision-making; contest the legal status of plurilateral JSIs; build G33/Africa Group coalitions.
Examples to use

Concrete cases, schemes and judgments

  • Appellate Body ceased functioning on 11 December 2019 when its membership fell below the quorum of three.
  • Bali Ministerial (2013) peace clause; India invoked it for exceeding rice subsidy limits from marketing year 2018–19 onwards.
  • Agreement on Fisheries Subsidies adopted at MC12, Geneva (2022) — first WTO pact centred on environmental sustainability.
  • MC13, Abu Dhabi (2024): e-commerce moratorium extended only until MC14/March 2026; no permanent PSH solution.
  • EU Carbon Border Adjustment Mechanism — India has flagged it at the WTO as a unilateral, trade-restrictive climate measure.
  • Multi-Party Interim Appeal Arbitration Arrangement (MPIA, 2020) — the EU-led stopgap India has not joined.
Keywords / terms

Terminology to weave into the answer

Appellate Body paralysisspecial and differential treatmentpublic stockholding and peace clauseMPIACBAM and green protectionismJoint Statement Initiatives

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