Minimalist IAS
2018 GS Paper II

UPSC CSE (Main) 2018 · GS Paper II · Question 19

What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially…

Syllabus line: International institutions — “Important International institutions, agencies and fora- their structure, mandate.”

GS Paper II 2018 · Q19

15 marks · 250 words International institutions

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?

Approach · directive: “what are the key areas of reform”

What it asks · Identify the reforms needed for the WTO to stay relevant amid trade wars (dispute settlement, rule-making, agriculture, developing-country treatment, new issues) and India's priorities in each.

The question has 2 parts — answer each

  1. Identify the key areas of reform for the WTO to survive the trade war: dispute settlement, negotiating function, agriculture, special and differential treatment, unilateral measures, new issues
  2. Bring out India's interest in each reform area

Open with · Tariff escalation from 2018, especially between the US and China, and strain on WTO dispute settlement have raised doubts about the rules-based trading order.

Cover

  • Dispute settlement: restore a functioning Appellate Body, hobbled by the US refusal to approve new members; address concerns of overreach while preserving binding two-tier adjudication, which protects developing countries like India.
  • Negotiating function: consensus makes decisions slow and some push plurilateral deals, but India insists on multilateral, inclusive outcomes and opposes plurilateral agreements entering WTO rules without consensus.
  • Agriculture: subsidy rules favour rich countries; India seeks a permanent solution on public stockholding for food security (MSP-based procurement) and a special safeguard mechanism, with cuts in developed countries' trade-distorting subsidies.
  • Special and differential treatment: flexibility for developing countries is under attack, with demands that large economies 'graduate'; India argues that development needs and low per capita incomes justify continued flexibility.
  • Unilateral measures: tariffs justified on 'national security' grounds, such as the US steel and aluminium tariffs of 2018, and retaliation strain the system; reform needs clearer discipline on security exceptions and better transparency.
  • New areas: rules on e-commerce, investment facilitation, industrial subsidies and state-owned enterprises are being sought; India wants policy space for digital and industrial development and easier movement of professionals (Mode 4) in services.

Close with · The WTO can survive by restoring its dispute system, securing balanced rules on agriculture and development, and settling new issues by consensus; India's interest lies in a rules-based system that keeps policy space for food security and development.

Question: UPSC's CS (Main) 2018, GS Paper II — paper ↗. Approach: Minimalist IAS, checked 30 Sept 2026 (how we verify) — UPSC publishes no model answers. ·

Model answer · 280 words (UPSC limit 250) · Minimalist IAS

Tariff escalation from 2018, led by the US and China, and the paralysis creeping over WTO dispute settlement have raised doubts about the survival of the rules-based trading order; reform must restore trust without sacrificing development.

Key areas of reform, and India's stake

  • Dispute settlement: restore the Appellate Body, blocked by the US refusal since 2017 to approve new members; address concerns about overreach and delay while keeping binding two-tier adjudication, which shields developing countries like India from power-based settlement.
  • Negotiating function: consensus makes decisions slow and some members push plurilateral deals; India insists on inclusive multilateral outcomes and opposes plurilateral agreements being written into WTO rules without consensus.
  • Agriculture: subsidy rules favour rich countries; India seeks a permanent solution on public stockholding for food security (MSP-based procurement), a special safeguard mechanism against import surges, and cuts in developed countries' trade-distorting support.
  • Special and differential treatment: flexibilities for developing countries are under attack, with demands that large economies 'graduate'; India argues that low per capita income and development needs justify continued flexibility.
  • Unilateral measures: tariffs justified on 'national security' grounds, such as the US steel and aluminium tariffs of March 2018, and tit-for-tat retaliation strain the system; discipline on the security exception and better notification and transparency are needed.
  • New issues: e-commerce, investment facilitation, industrial subsidies and state-owned enterprises are on the table; India wants policy space for digital and industrial development, and progress on Mode 4 movement of professionals in services.

The WTO can survive by restoring its dispute system, securing balanced rules on agriculture and development, and settling new issues by consensus; India's interest lies in a rules-based order that keeps policy space for food security and development.

Written by Minimalist IAS from facts checked at source (how we verify) — a little fuller than exam length, so every part of the question is covered; in the hall, keep the structure and trim the detail. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.

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