India advocated for increased flexibility for developing nations in exiting World Trade Organization (WTO) agreements to address challenges encountered in industrialization. India highlighted concerns regarding the merging of traditional development issues like industrial policy with newer topics under the umbrella of “Trade and Industrial policy”.
The inclusion of non-trade issues in WTO discussions was cautioned against by India during the thirteenth Ministerial Conference (MC13) of the WTO in Abu Dhabi, led by Commerce Secretary Sunil Barthwal. Mixing non-trade topics with WTO rules could result in heightened trade fragmentation, Barthwal warned during the session on Trade and Inclusion.
India’s stance aligns with its consistent opposition to the integration of what it considers non-trade matters such as MSME, environment, and gender into WTO discussions. The country firmly believes that the WTO’s focus should remain on trade-related matters, leaving non-trade issues to be addressed in other international forums like the United Nations.
At MC13, India prioritizes keeping non-trade issues outside the WTO’s purview, emphasizing bilateral discussions, such as those with the European Union (EU) regarding the EU’s Carbon Border Adjustment Mechanism (CBAM). India engages with the EU on CBAM to address concerns related to its impact on domestic industries, particularly in sectors like steel, iron ore, and cement.
India emphasizes that unilateral measures, including those aimed at addressing climate change, should not unfairly discriminate or restrict global trade. While the WTO has informal working groups on issues like MSMEs and gender, India opts out of these discussions, maintaining that such topics fall outside the WTO’s mandate.
