THE WORLD TRADE ORGANIZATION IS FLAILING

NEWS: The World Trade Organization (WTO) held its 14th Ministerial Conference (MC14) in: Yaoundé, Cameroon (March 2026)à Failure to reach consensus+ No ministerial declaration

Major Global Concern

• Rising unilateralism by United State
• Weakening of key WTO principle: Most-Favoured Nation (MFN) → equal trade treatment
• Threat to multilateral trade system

Key Failure of MC14

• No agreement among 166 member countries
• Only a weak “Yaoundé Package” (draft decisions)
• No clear future roadmap

Major Issues Highlighted

End of E-Commerce Moratorium

• Since 1998: No customs duty on digital trade
• At MC14: Countries failed to extend it → moratorium expired (March 2026)
• Implications: Countries can now: Impose tariffs on digital trade
• Impact: Revenue gain for developing countries

Parallel Legal Systems Emerging

• New E-commerce Agreement (ECA): Signed by 66 countries, No tariffs on digital trade
• Result: Two systems: WTO → allows tariffs, ECA → prohibits tariffs

TRIPS Moratorium Issue

• Since 1995: No non-violation complaints under TRIPS
• At MC14: No consensus → uncertainty
• ConcernàDeveloped countries may challenge: Public health laws of developing nations

Failure of Plurilateral Agreement (IFD)

Investment Facilitation for Development (IFD): Supported by 129 countries

• Blocked by India India’s Concern
• Lack of: Legal safeguards, Inclusivity

India’s Role & Position

• Opposes exclusive plurilateral agreements
• Supports
  • Inclusive multilateralism
  • Protection of: MFN principle, Special & Differential Treatment
• India should: Lead reforms, Create legal framework for plurilateral agreements

Conclusion

• WTO is not collapsing but weakening (“flailing”)
• MC14 exposed: Lack of consensus, Institutional paralysis, Need for urgent reforms