Q17. The broader aims and objectives of WTO are to manage and promote international trade in the era of globalization. But the Doha round of negotiations seems doomed due to differences between the developed and the developing countries.” Discuss from the Indian perspective.

Model Answer:

Introduction

The World Trade Organization (WTO) aims to regulate and facilitate international trade, yet the Doha Round's stagnation highlights profound disparities between developed and developing nations, notably affecting India’s trade interests. 

Body

Objectives of the WTO

1. Trade Liberalization: The WTO aims to reduce trade barriers, facilitating smoother international transactions.

• For Example, The reduction of tariffs on agricultural products has benefited Indian farmers exporting to global markets, increasing competitiveness.

2. Dispute Resolution: Providing a platform for countries to resolve trade disputes is crucial for maintaining international relations.some text
   • For Example, India successfully challenged the U.S. on solar energy tariffs, showcasing the WTO's role in equitable trade practices.
3. Economic Growth: By promoting free trade, the WTO aims to stimulate economic growth worldwide.some text
   • For Example, India's integration into global supply chains has led to substantial GDP growth, particularly in the IT and service sectors.
4. Sustainable Development: The WTO encourages trade policies that support sustainable economic practices.some text
   • For Example, India's focus on renewable energy exports aligns with WTO objectives of sustainability, and promoting green technologies.
5. Capacity Building: Helping developing countries build trade capacity enhances their competitiveness.some text
   • For Example, The WTO’s Aid for Trade initiative has facilitated India's infrastructure development, enhancing its trade capacity.

Challenges of the Doha Round

1. Divergent Interests: Developed countries often prioritize industrial goods, while developing nations focus on agriculture.some text
   • For Example: India’s resistance to reducing agricultural subsidies reflects its commitment to protect its farmers.
2. Unequal Negotiating Power: Developed nations possess greater bargaining power, skewing negotiations.some text
   • For Example, The failure to finalize agreements on cotton subsidies demonstrates how developed nations leverage their power against developing countries.
3. Focus on Non-Tariff Barriers: Developed countries emphasize regulations and standards, which can disadvantage developing nations.some text
   • For Example: India's challenges in meeting EU food safety standards have hampered its agricultural exports.
4. Limited Inclusivity: The exclusion of smaller nations in negotiations limits broader consensus.some text
   • For Example: Countries like Nepal often struggle to voice their concerns in the Doha discussions, leading to a lack of comprehensive agreements.
5. Political Will: The lack of commitment from major economies stymies progress.some text
   • For Example, The U.S. and EU’s inconsistent policies on climate change have delayed negotiations on trade and environmental issues.

Conclusion

In conclusion, while the WTO's objectives are crucial for global trade, the Doha Round’s stagnation underscores the need for more equitable negotiations, especially from the Indian perspective. 

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