India calls for WTO action on non-tariff barriers, ensuring strong dispute resolution mechanism

Paris: India has called for action to curb non-tariff barriers, address trade distortions caused by non-market economies, and restore a strong dispute settlement mechanism at the WTO, Commerce and Industry Minister Piyush Goyal said on Wednesday.

The minister also pitched for strengthening the current consensus-based approach at the World Trade Organisation (WTO), the special and differential treatment given to less developed countries and developing countries, and bringing back focus on issues that have already been finalised and mandated at previous ministerial meetings.

"India made a strong pitch for addressing non-tariff barriers that certain countries use to deprive others of market access, take necessary action against non-market economies, ensure that we have a strong dispute settlement mechanism at the WTO so that finality can be brought and discipline can be maintained," Goyal told reporters here.

The minister made these remarks in a meeting of about 25 ministers of WTO member countries, including Australia, Singapore, France and Nigeria. WTO Director General Ngozi Okonjo-Iweala also participated in the meeting.

This mini-ministerial informal gathering was called by Australia ahead of the 14th ministerial conference, scheduled in Cameroon in March next year. It was held on the margins of the OECD (Organisation for Economic Co-operation and Development) Ministerial Council Meeting here.

The WTO deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. It is a Geneva-based 166-member body.

Since 2009, the WTO's dispute settlement mechanism has not been functioning properly as the US has stalled appointments of members in the appellate body. On earlier occasions, India has pressed for a two-tier dispute resolution system at the WTO.

"All in all, the shared concerns of all the ministers were placed before the gathering today, and we have all resolved to collectively work to strengthen the working of the WTO, to ensure the core principles are respected and work towards global good and global growth in trade," he said.

He added that it was agreed upon by the member nations to make an effort to bring back the mojo into the organisation as all countries recognise the importance of multilateralism.

The other tracks which came up for discussion include resolving agri issues, including finding a permanent solution to the issues of public stockholding for food grains.

"There is the track on finding solutions to address the concerns of overfishing and indiscriminate fishing that is leading to depletion of fish stocks, there are concerns about several JSIs (joint statement initiatives) (or) pluri-laterals, which some countries believe should be brought within the multi-lateral framework," he said.

On the China-led proposal for an investment facilitation pact, he said, issues that have been mandated at the WTO should get priority and should be the first issues to be resolved.

Issues going beyond trade (like this proposal) should not be brought into it as it would create further differences between member countries, he added. India is against this proposal.

Whether any member raised the issue of MPIA (multi party interim appeal arbitration arrangement), the minister said only one or two members spoke about that.

"But there does not seem to be very much consensus or any traction to that idea. I have not heard of any cases resolved through MPIA," he said.

The MPIA is being pushed by certain members. It is an alternative mechanism to resolve WTO disputes that are appealed by a country in the absence of a functional WTO Appellate Body.

Whether the WTO is facing an existential crisis, he said that one should not jump to the conclusion that an existential crisis has been created.

"Challenges will come and situations will arise, we have to address such challenges, face these situations and within the ambit of the WTO framework," he said, adding "the WTO now is about 30 years old, what we need to do is work with an open mind and unlock possibilities".