Why this matters now
The WTO is examined for its structure, core principles, key agreements, and India’s negotiating positions (food security, fisheries subsidies). The paralysis of its Appellate Body and the rise of bilateral FTAs make it a live debate on the future of multilateral trade.
Origin and core principles
The WTO was established on 1 January 1995, succeeding the GATT (1947) after the Uruguay Round; it is headquartered in Geneva. Two core principles of non-discrimination:
- Most-Favoured-Nation (MFN) — a trade concession to one member must be extended to all;
- National Treatment — imported and domestic goods must be treated equally once in the market.
The highest decision-making body is the Ministerial Conference (every two years); decisions are by consensus.
Key agreements
- Agreement on Agriculture (AoA) — market access, domestic support, export subsidies;
- TRIPS — intellectual property;
- GATS — services; SPS/TBT — standards;
- Trade Facilitation Agreement (TFA, 2017) — simplifying customs.
The dispute-settlement crisis
The WTO’s prized dispute-settlement mechanism has been crippled since 2019, when the US blocked appointments to the Appellate Body, leaving it non-functional. Combined with stalled negotiations (the Doha Round), this has weakened the rules-based system and pushed countries toward bilateral and regional FTAs.
India at the WTO
India defends public food stockholding for its food-security programmes (seeking a permanent “peace clause” solution), opposes harmful fisheries subsidies by big fishing nations while protecting its small fishers, and champions policy space for developing countries and special & differential treatment. It has used the WTO both to defend its interests and to challenge protectionism.
UPSC angle
Master MFN vs National Treatment, the key agreements (AoA, TRIPS, TFA), the Appellate Body paralysis, and India’s positions (food-security stockholding/peace clause, fisheries subsidies).
Frequently asked questions
When was the WTO established?
On 1 January 1995, succeeding the GATT (1947); it is headquartered in Geneva.
What are MFN and National Treatment?
MFN means a concession to one member is extended to all; National Treatment means imported and domestic goods are treated equally once in the market.
Why is the WTO dispute-settlement system in crisis?
Because the US has blocked appointments to the Appellate Body since 2019, leaving it unable to hear appeals.
What are India’s key positions at the WTO?
Protecting public food stockholding (peace clause), opposing harmful fisheries subsidies while shielding small fishers, and defending policy space for developing countries.