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.
It asks 2 things — answer each
- 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
- Bring out India's interest in each reform area
Open with · In March 2018 the US imposed a 25 per cent 'national security' tariff on steel imports, and retaliation followed, while US vetoes were emptying the Appellate Body; the WTO's survival depends on reforms that restore trust without sacrificing development.
Cover
- Dispute settlement: restore the Appellate Body, blocked by the US since 2017; India values binding two-tier review (since then, the last member's term expired on 30 November 2020).
- Unilateral measures: discipline 'national security' tariffs such as the US Section 232 steel tariff (March 2018) and tit-for-tat retaliation.
- Agriculture: de minimis is 10% for most developing countries; a permanent solution on public stockholding, promised at Bali (2013); cuts in rich countries' trade-distorting support.
- Special and differential treatment: resist forced 'graduation'; low per capita income justifies flexibility.
- Negotiating function: consensus and inclusive multilateral outcomes rather than plurilateral deals without consensus.
- New issues: e-commerce, investment facilitation, industrial subsidies and SOEs; India wants policy space and Mode 4.
Close with · SDG target 17.10 calls for a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the WTO; India's interest lies in reform that keeps policy space for food security and development.
Add value (verified)
- The US Section 232 proclamation (March 2018) imposed an additional 25 per cent duty on steel imports from most countries.Presidential Proclamation on Adjusting Imports of Steel into the United States - The White House (archived), 8 March 2018 ↗“all steel articles imports specified in the Annex shall be subject to an additional 25 percent”
- The Appellate Body is unable to review appeals because of vacancies; the last sitting member's term expired on 30 November 2020.Appellate Body - World Trade Organization ↗“The term of the last sitting Appellate Body member expired on 30 November 2020.”
- The Bali Ministerial Decision (2013) set an interim mechanism on public stockholding for food security and promised a permanent solution by the 11th Ministerial Conference.Public stockholding for food security purposes - Ministerial Decision WT/MIN(13)/38, WTO ↗“Members agree to put in place an interim mechanism as set out below, and to negotiate on an agreement for a permanent solution”
- De minimis trade-distorting support is generally 5% of production value for developed and 10% for most developing countries; 32 members with larger subsidies have reduction commitments.Domestic support in agriculture: the boxes - World Trade Organization ↗“This threshold is generally 5% of the value of agricultural production for developed countries, 10% for most developing countries”
- SDG target 17.10 calls for a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the WTO.Goal 17 - United Nations Department of Economic and Social Affairs (sdgs.un.org) ↗“Target 17.10 Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under th”
Question: UPSC's CS (Main) 2018, GS Paper II — paper ↗. Approach: Minimalist IAS, checked 3 Oct 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer· 351words · Minimalist IAS
In March 2018 the US imposed a 25 per cent tariff on steel imports on 'national security' grounds, and partners retaliated. Meanwhile US vetoes were emptying the WTO Appellate Body. The WTO can survive this trade war only through reforms that restore trust without sacrificing development.
Key areas of reform for the WTO to survive
- Dispute settlement: fill Appellate Body vacancies, blocked by the US since 2017, while answering its concerns on overreach and delay. India gains most from binding two-tier review, which shields weaker members from power-based settlement. (Since then, the Body has been unable to hear appeals; the last member's term expired on 30 November 2020.)
- Unilateral measures: tighter discipline on the GATT security exception, better notification, and an end to tit-for-tat tariffs outside WTO rules.
- Negotiating function: consensus is slow and some members push plurilateral deals; India insists on inclusive multilateral outcomes and opposes such deals entering WTO rules without consensus.
Reform areas that matter most to India
- Public stockholding: at Bali (2013) members agreed an interim mechanism and promised a permanent solution by the 11th Ministerial Conference; it was still pending in 2018, though India's MSP procurement depends on it.
- Farm subsidy imbalance: trade-distorting support is capped at 10 per cent of production value for most developing countries (de minimis), while 32 members with reduction commitments have their own, higher Amber Box limits. India seeks cuts in these and a special safeguard mechanism against import surges.
- Special and differential treatment: any demand that large economies 'graduate' would ignore low per capita income; India seeks continued flexibility.
- New issues: e-commerce, investment facilitation, industrial subsidies and state-owned enterprises; India wants policy space for digital and industrial growth, and progress on Mode 4 movement of professionals.
| Area | Trade-war strain | India's ask |
|---|---|---|
| Dispute settlement | Appellate Body blocked | Restore two-tier review |
| Agriculture | Subsidy caps, peace clause | Permanent stockholding solution |
| Development | Pressure to graduate | Keep S&DT flexibility |
SDG target 17.10 calls for a 'universal, rules-based, open, non-discriminatory and equitable multilateral trading system' under the WTO. India's interest lies in reform that restores that system while keeping policy space for food security and development.
Prepared by Minimalist IAS to the answer standard of Shivam Singh (mentor, 7 years) · facts checked against official sources (how we verify) · updated 3 Oct 2026. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.
