WTO Diary: Should countries be allowed to leave trade body?

Should countries be allowed to leave WTO? This question is floating in the corridors of the WTO Ministerial at Abu Dhabi. Negotiators say India has proposed that if a country has not gained anything being in the organisation, why not give it an option to withdraw from the organisation?

The Indians have not said anything openly about this, but has shown aggression in the ongoing talks on investment. This can be a big initiative because it is not easy for countries bound by WTO rules to get out of it.

India is at the centre of discussions in Abu Dhabi. Everyone is keeping a close watch on every stand and presentation of India. India’s opposition to getting investment under WTO is well known. India’s contention is that WTO is a trade organization and has no place for investment.

There is also talk that India has made the offer on exit option because several countries also want to bring issues like environment, carbon credit, women’s participation in business and small scale industries on the agenda. India says that these issues are under discussion in other international fora, so why bring raise them here?

China not relenting

There was a lot of debate on fisheries at the 2022 Geneva meeting. The talks were about to collapse. The matter pertains to the subsidy being given on fishing in remote seas. In Geneva, India had at the last moment managed to cut subsidies by develpoed nations and enforce a ban which led to the talks ending on a psoitive note.

However, there are major differences of opinion regarding huge subsidies, corporate fishing, over capacity and over fishing. Along with India, environmentalists also want indiscriminate fishing to be stopped to save marine life.

China is adamant on this issue and India and China are face to face here. China gives the highest subsidy on fishing in the world. China had agreed on some issues at the Geneva meeting. If China changes its stance, only then can something be done on fishing.

Why should this import be free?

A new front has opened between companies and governments. The world’s big e-commerce companies want that customs duties should not be imposed on international e-commerce.

The group of developed countries is backing these companies in this matter. WTO had taken a decision in 1998 to promote e-commerce, under which there was a ban on imposing customs duty on international e-commerce till March 2024.

Now the proposal is to extend this ban further. India and Indonesia are vocally opposing this. Sources say a deal can be achieved here with some give and take by both the parties.

the talks are saying that something can be done with some give and take on this matter.