WTO’s dysfunctional dispute settlement system deprives countries of effective redressal: Goyal

New Delhi: India on Thursday called upon WTO members to work towards making the WTO’s dispute settlement system fully functional, as the current dysfunctional mechanism has deprived countries of receiving effective redressal.

On the first day of the World Trade Organisation’s (WTO) 14th ministerial conference (MC14) in Yaounde, Cameroon, Commerce and Industry Minister Piyush Goyal said that there is a need for a careful reconsideration of the further extension of the moratorium on customs duties on e-commerce trade.

“A dysfunctional Dispute Settlement System has deprived Members from effective redressal. We must restore the automatic and binding dispute settlement system,” he said.

Since 2009, the WTO’s dispute settlement mechanism has not been functioning properly as the US has stalled appointments of Members in the Appellate Body.

The World Trade Organisation (WTO) Members have agreed not to impose customs duties on electronic transmissions since 1998, and the moratorium has been periodically extended at successive ministerial conferences (MC), which is the highest decision-making body of the 166-member body.

India has time and again emphasised the need to discuss the scope of the duty moratorium as there are revenue implications because of it.

The four-day MC14 will end on March 29.

“In the absence of a common understanding among Members on the scope of the moratorium on customs duties on electronic transmissions and given its potentially significant implications, the continued extension of this moratorium warrants careful reconsideration,” he said.

On WTO reforms, the minister said the necessary reform should be carried out through a transparent, inclusive and member-driven process, keeping development at its core, upholding the foundational principles such as non-discrimination, consensus-based decision-making and equity.

A key principle of special and differential treatment (S&DT) should be precise, effective and operational, he added.

On agriculture, he said permanent solution on public stockholding for food security purposes, special safeguard mechanism and cotton are long-pending mandated issues and the member countries “must deliver on them on priority”.

“India remains committed to negotiating a comprehensive Fisheries Subsidies Agreement that balances current and future fishing needs, protects the livelihoods of poor fishers, with appropriate and effective S&DT,” Goyal said.