What are the key areas of reform if the WTO has to survive in the present context of Trade War, especially…

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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?

Ghissu Editorial · Accepted Answer

The WTO must revive its Appellate Body, narrow the security exception and guard consensus, while securing India's food security and special and differential treatment. Its Appellate Body has been dysfunctional since December 2019, leaving rulings open to appeal into the void.

**Introduction**

The 2018 US steel and aluminium tariffs, the US-China tariff war and the blocking of Appellate Body judges have left the WTO, whose members make up nearly 98 percent of world trade (RIS, 2024), fighting for relevance.

**Systemic Reforms to Make WTO Rules Bind Again**

SKETCH: flow-cycle | Trade War Spiral
- Unilateral tariffs
- Retaliation
- Security exception claimed
- Appeal into void
- Rules lose force

1. **Revive the Appellate Body**: Dysfunctional since December 2019, it needs restoring, since the interim MPIA has only 57 members (RIS, 2026).
2. **Tame the security exception**: Building on the 2019 Russia: Traffic in Transit ruling, Article XXI needs an agreed test so it cannot cloak protectionism.
3. **Guard consensus**: Plurilaterals on e-commerce and investment, which advance without India, must enter the rulebook only by consensus under Article X.9.

**Reforms That Serve India's Interests**

1. **Food security**: A permanent public stockholding solution must replace the Bali peace clause, and 1986-88 reference prices must go, as developed members hold 95 percent of AMS entitlements (RIS, 2025).
2. **Special and differential treatment**: With 122 of 166 members developing (RIS, 2026), India must resist ending self-declared status.
3. **Fisheries and green rules**: Fisheries subsidy curbs must spare small fishers, and the EU's CBAM needs WTO discipline.

**Way Forward**

1. **Coalitions and hedges**: Lead the G33 on food security, back a reformed Appellate Body, and use the India-UK CETA and India-EFTA TEPA as complements, not substitutes.

**Conclusion**

A reformed WTO with a working court and protected policy space is India's best shield in a tariff-war age, securing a rules-based, multipolar order.

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?

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