India Faces Global Pushback Over Blocking WTO Plurilateral Agreements

India's opposition to plurilateral agreements at the World Trade Organization (WTO) came under scrutiny during its latest Trade Policy Review, with several member countries questioning New Delhi's stance on trade reforms. According to reports, representatives from the European Union, Canada, the United Kingdom, Cambodia and Gambia argued that India's position was slowing progress on the WTO's broader reform agenda. The review, conducted once every five years, provides an opportunity for member nations to examine a country's trade policies and engage in discussions on key issues.

An Indian delegation led by Commerce Secretary Rajesh Agrawal presented details of the country's trade and economic reforms before WTO members. During the discussions, several countries reportedly raised concerns over India's continued opposition to plurilateral agreements, particularly those relating to e-commerce and investment facilitation. These agreements are negotiated and adopted by groups of willing countries rather than requiring consensus from all WTO members.

India has consistently maintained that major global trade rules should be negotiated through multilateral consensus involving the entire WTO membership instead of smaller groups of countries. New Delhi argues that plurilateral agreements could weaken the multilateral trading system by creating parallel rule-making mechanisms that may disadvantage developing economies. India has also maintained that reforms should preserve the principle of inclusiveness and ensure that the interests of all members, especially developing and least-developed countries, are adequately protected.

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Supporters of plurilateral agreements contend that such arrangements help advance trade negotiations in areas where consensus among all WTO members has proven difficult. They argue that these agreements allow willing countries to modernise trade rules on emerging sectors such as digital commerce and investment while keeping the WTO relevant in a rapidly evolving global economy. Several developed and developing countries have backed these initiatives as a practical way to achieve progress despite long-standing deadlocks in multilateral negotiations.

The discussions took place as WTO members continue debating reforms aimed at strengthening the organisation's negotiating and rule-making functions. India's Trade Policy Review is expected to continue serving as a platform for member countries to assess its trade policies and exchange views on global trade governance. While differences remain over plurilateral agreements, the review highlights the broader challenge of balancing inclusive multilateral decision-making with efforts to modernise international trade rules.

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