14th Ministerial Conference (MC14) of WTO

Why in News?

The World Trade Organisation’s (WTO) 14^th Ministerial Conference (MC14) will take place from March 26 to 29 at Yaoundé, Cameroon.

What about the WTO?

• WTO – It is the only international organisation that deals with the rules of trade between countries to regulate international trade, ensure fair competition and provide a forum to negotiate trade disputes.
• Establishment – It was created under the Marrakesh Agreement, 1995, replacing the 1947 General Agreement on Tariffs and Trade (GATT).
• Members – 166 members representing 98% of world trade (Timor-Leste & Comoros were the last to join in 2024).
• Core Principles
  • Most Favoured Nation (MFN) - Non-discrimination among members.
  • National Treatment - Equal treatment for foreign and domestic goods.
  • Bound Tariffs - Members cannot exceed agreed tariff limits
• Headquarters – Geneva, Switzerland.
• Functions – To promote free trade by negotiating and implementing agreements among member states.
• To provide a forum for countries to negotiate trade rules and settle economic and trade disputes between member nations.
• Ministerial Conference (MC) – It is the WTO’s supreme decision-making body, which brings together trade ministers from all member nations, usually every two years.
• Decision making – MC can take decisions on all matters under the WTO agreements, taken through consensus, and any member can exercise a veto.

What is the context in which MC14 is taking place?

• Geopolitical Rivalry & Trade Security – MC14 is taking place amid rising geopolitical rivalry between the U.S. and China, alongside ongoing global conflicts, and the mounting securitisation of international trade relations.
• Decline of Multilateralism – Trade multilateralism appears to be in retreat, while unilateralism is on the rise.
• U.S. Assault on WTO Rules – Over the last year, the U.S. has launched a massive assault on trade multilateralism by weaponising tariffs, undermining the WTO’s foundational principles -
  • Most Favoured Nation (MFN) rule, which ensures non-discrimination among trading partners.
  • Bound tariff rates, the obligation not to exceed agreed tariff limits.
• By imposing arbitrary tariffs, the U.S. has violated these rules and pressured countries into one-sided trade agreements through tariff coercion.

Why is trade multilateralism reeling under a crisis?

• U.S. Disillusionment – There is a growing belief in Washington that the WTO, which the U.S. was instrumental in creating in 1995, has not served American interests well.
• China’s rise & its membership – The meteoric rise of China in the last two decades has significantly narrowed the gap between Washington and Beijing.
• Moreover, China’s accession to the WTO, facilitated by Washington, did not curb Beijing’s state-led industrial policies as intended.
• U.S. Push for Freedom from Constraints – Consequently, the U.S. now wants to eliminate all legal constraints that apply to it, such as WTO law, to take on the Chinese threat head-on.
• The U.S. paralysed the WTO’s dispute settlement system by relentlessly blocking the appointment of members to the Appellate Body — the organisation’s highest judicial arm.
• WTO’s inability to draft new trade rules – The WTO’s consensus-based decision-making has slowed progress.
• Over the past three decades, the WTO has created only two new agreements - 
  • Trade Facilitation Agreement and
  • Agreement on Fisheries Subsidies.
• The sluggishness in forming new trade rules has pushed countries to seek new venues for trade law-making, such as free trade agreements (FTAs).

What are the key issues in MC14?

• Plurilateral Agreements – Debate over including agreements like Investment Facilitation for Development and Electronic Commerce into the WTO rulebook.
• Although the WTO is a multilateral organisation, it allows plurilateral trade agreements — agreements between fewer than all WTO members.
  • Plurilateral deals bind only signatories but need consensus among all WTO members for inclusion in Annex 4.
• Many countries believe that plurilateral agreements are the way to revive the WTO’s legislative function; a few countries, such as India, fear fragmentation of the system.
• E-Commerce Moratorium – First agreed in 1998 and renewed every two years, is not to impose tariffs on electronic transmissions & it is set to expire on March 31.
• While the developed world wants it to be made permanent, the choice is not so easy for developing countries like India.
• Given the rise in digital trade, continuing the moratorium could lead to significant revenue losses for developing countries.
• Special and Differential Treatment (SDT) – SDT grants special rights to developing and least developed countries, since not all WTO members are on an equal footing.
• The U.S. is keen to weaken the SDT principle by prohibiting larger economies, such as China, India, Brazil, and Indonesia, from enjoying special rights.
• Dispute Settlement Reform – It is critical to unequivocally demand the restoration of the Appellate Body to put the WTO’s dispute settlement system back on track.
• Foundational Principles Under Threat – The U.S. is expected to use MC14 to challenge foundational WTO principles, such as the MFN rule.
• Developing countries that benefit from these principles should strongly oppose such efforts.

What should be India’s role?

• Champion of Multilateralism – India should reaffirm its support for trade multilateralism and should regain its role as a normative leader for the Global South by using the MC14 to articulate the importance of multilateralism.
• Strategic Alliances – Forge coalitions with other developing countries to defend SDT and WTO principles.
• Flexibility in Positions – New Delhi should revisit entrenched stances, such as opposition to plurilateral agreements.
• India, along with other countries, should consider other innovative solutions, such as electing Appellate Body members through voting.
• Guard Against Unilateralism – If MC14 fails to strengthen the WTO and promote trade multilateralism, it will represent a victory for America’s blatant unilateralism.
• This would pave the way for a coercive global trade order, detrimental to the interests of developing countries.

Reference

The Hindu | What is at stake at the WTO’s MC14?

Corporate Laws (Amendment) Bill, 2026

Why in News?

After moving the Corporate Laws (Amendment) Bill, 2026 in the Lok Sabha recently, Finance Minister proposed to send the Bill to a 31-member Joint Parliamentary Committee (JPC) to enable further scrutiny.

• The Corporate Laws (Amendment) Bill, 2026, seeks to amend the Limited Liability Partnership Act, 2008 and the Companies Act, 2013.
• Aim - To streamline regulatory processes for companies, and decriminalize minor offences by shifting from criminal penalties to monetary fines.
• The proposal modifies the norms for convening hybrid annual or extraordinary general meetings, while also strengthening the frameworks for unpaid dividends and investor protection.
• It also proposes
  • The introduction of a framework for conversion of specified trusts (registered under SEBI / IFSC authority) into Limited Liability Partnerships (LLPs) and
  • An increase of profitability threshold for applicability of corporate social responsibility (CSR).

Key provisions

• Corporate Social Responsibility Changes - It increases the eligibility threshold for Corporate Social Responsibility to be hiked to Rs 10 crore profit from the current one of Rs 5 crore.
• At the moment, companies are required to spend 2% of the average profit from the last 3 years on CSR initiatives.
• Small Company Definition - The definition is redefined/expanded to reduce compliance burdens, including relaxed auditor appointment norms.
• Relaxation to small Companies - It also proposes to provide relaxation to small companies by providing exemption from CSR provisions, requirements related to auditor appointment, and reduction in additional fees.
• Increase in Time Period - The Bill also seeks to increase the time period for transfer of unspent CSR amounts relating to ongoing projects to the unspent corporate social responsibility account with the scheduled bank to 90 days from the current 30 day-period.
• Digital Governance - Increased acceptance of virtual/hybrid AGMs and EGMs is encouraged, though at least one physical AGM is mandatory every three years, as outlined by TaxGuru.
• Holding Meetings -Enabling companies to hold Annual General Meetings and Extraordinary General Meetings through video conferencing or other audio-visual means.
• With the requirement of holding at least one Annual General Meeting in physical mode at least once in 3 years.
• Self-declarations - Certain affidavits required under the Act can be replaced with self-declarations.

Reference

The Indian Express | Corporate Laws (Amendment) Bill

Generic Drugs as an alternative to Semaglutide

Why in News?

Patent expiry of Semaglutide has enabled launch of multiple generic versions in India with prices reduced by 70–90%.

Obesity

• It is a chronic disease due to excess accumulation of body fat that affects health, often defined by a Body Mass Index (BMI) of 30 or higher.
• It is driven by genetic, socioeconomic, and lifestyle factors primarily consuming more calories than are burned.
• Health Risks - It is associated with serious conditions, including cardiovascular disease, type 2 diabetes, high blood pressure, high cholesterol, liver disease, sleep apnea, and various cancers.

Type 2 diabetes is a major health crisis in India, with an estimated 77–101 million adults suffering from the condition, making it the world’s "diabetic capital".

Semaglutide

• Semaglutide is a prescription drug used for type 2 diabetes and obesity management.
• Drug Class - GLP-1 receptor agonist (Glucagon-Like Peptide-1).
• Uses-Type 2 diabetes management and Obesity and long-term weight control.
• Comparator Drug - Tirzepatide (dual GIP/GLP-1 agonist).
• Global Context - One of the fastest-growing drugs worldwide, relevant for pharma economics.
• Mechanism of Semaglutide – Mimic GLP-1 hormone, reduce hunger signals and increase satiety.
• Leads to lower calorie intake and gradual weight loss.

Generic Medicines

• Drugs that are bioequivalent to branded (innovator) medicines, with the same active ingredient, dosage, safety, and efficacy.
• Regulated by - Central Drugs Standard Control Organisation (CDSCO).
• Patent Rules
  • Enter market after patent expiry.
  • Governed under WTO–TRIPS Agreement.
  • Patent duration - 20 years from filing date.
  • India’s Patents Act, 1970 (Section 3d) prevents “evergreening” of patents.
• Jan Aushadhi Scheme - Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) provides affordable generics through government-run outlets.
• Some Generic drugs used as alternative for semaglutide - Semanat Semafull, Semaglyn, Mashema, Alterme, and Noveltreat.
• Easy-to-inject pen devices - Semanext, Livarise, and Sembolic.

Reference

Indian Express | Semaglutide

Immigration, Visa, Foreigners Registration & Tracking (IVFRT) Scheme

Why in News?

Recently, Prime Minister approved the continuation of the Immigration, Visa, Foreigners Registration & Tracking (IVFRT) Scheme for another five years (2026–2031).

• Aim – To modernize and upgrade immigration, visa issuance, and foreigners’ registration services by building a world‑class immigration ecosystem and to strengthen national security.
• Type – Central sector scheme (100% funded by Union Government).
• Launched in – May 2010. 
• Nodal Ministry – Ministry of Home Affairs (MHA).
• Implementing Agency – National Informatics Centre (NIC) in collaboration with MHA.
• Objectives – Integration of immigration posts, Foreigners Regional Registration Office (FRRO)s, and Foreigners Registration Offices.
• Adoption of emerging technologies (mobile apps, kiosks, e‑gates).
• Strengthen monitoring of foreigners and address illegal migration.
• Boost tourism, business, and medical travel.
• Benefits - Faster visa processing
• Reduced passenger clearance time
• Boosts tourism, aviation, hospitality, and ease of doing business.
• Strengthens national security through integrated tracking.
• Key Components for Travellers & Hosts
• e-Visa System - A streamlined online process for tourists, business travellers, and medical patients.
• Fast Track Immigration (FTI-TTP): A Trusted Traveller Programme using automated e-gates at 13 major airports, reducing clearance time to approximately 30 seconds for enrolled Indian nationals and OCI cardholders.
• Foreigner Registration - Mandatory for certain visa types (e.g., Student, Employment, Research) if staying longer than 180 days; registration must typically be done within 14 days of arrival via the official FRRO portal.
• Form C- A legal requirement for anyone hosting foreign nationals (hotels, guest houses, or private individuals) to report the guest's arrival through the Bureau of Immigration portal.

References

1. PIB | IVFRT
2. The Hindu | IVFRT