India at WTO: Transparency Must Not Become a Tool for Trade Retaliation

India has cautioned members of the World Trade Organization (WTO) against the misuse of “transparency” provisions to justify trade retaliation or challenge legitimate domestic policies, emphasising that such measures must be supported by adequate capacity-building efforts. The statement comes amid ongoing discussions on reforming global trade rules and ensuring fair participation of all member nations. India reiterated that transparency obligations should not disproportionately burden developing economies that may lack the institutional capacity to comply fully.

Transparency forms a key pillar of the WTO’s Technical Barriers to Trade Agreement, under which member countries are required to regularly disclose information related to trade policies, subsidies, and regulatory measures. While acknowledging the importance of these disclosures, India stressed that the system must remain equitable and supportive rather than punitive. Officials highlighted that many developing nations continue to face structural and administrative challenges in meeting such requirements within stipulated timelines.

The push for stricter transparency norms has been led by the United States, which has proposed tighter rules on mandatory disclosures as part of broader WTO reform efforts. Washington has argued that several countries fail to notify changes in subsidies, tariffs, and other trade-related measures in a timely manner, thereby affecting the predictability of global trade. However, this proposal has drawn resistance from multiple developing countries that fear such measures could lead to penalties without addressing underlying capacity gaps.

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India’s concerns were articulated by Commerce and Industry Minister Piyush Goyal during a session on “level playing field issues” at the 14th Ministerial Conference of the WTO. The high-level meeting, currently underway in Yaounde, serves as the apex decision-making forum of the 166-member organisation and is held biennially. India underscored the need for a balanced approach that allows all nations to build productive capacity, generate employment, and integrate meaningfully into global trade systems.

In a parallel discussion, Commerce Secretary Rajesh Agrawal supported the idea of restarting WTO reform efforts within a defined timeline, but called for decisions to be based on robust evidence and inclusive consultation processes. He warned against “cherry-picking” issues or advancing pre-determined positions that could undermine the multilateral nature of the organisation. India also expressed reservations about plurilateral agreements, stating that such arrangements risk fragmenting the global trading framework.

On the sidelines of the conference, Goyal held bilateral discussions with his Canadian counterpart Maninder Sidhu to review progress on the proposed free trade agreement between the two countries. He also met Oman’s Secretary of State for Industry and Trade, Omar Hejira, to explore avenues for strengthening economic cooperation. These engagements reflect India’s broader strategy of balancing multilateral negotiations with targeted bilateral partnerships to advance its trade interests.

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