There are various instances where US has tried to bend the rules of global trading system in its favour. What should India do to have a stable economy at the global level? (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 6 years
KEY POINTS
The time-tested strategy of the US of erecting barriers to exports from other countries, in order to coax them to come to the negotiating table and accept even the most unreasonable demands of the US business and trade.
Instances where US bent the rules
· The illegal steel and aluminum tariffs, as well as the threatened withdrawal of GSP benefits to India, should be viewed as integral parts of this line of action by the US.
· The US has taken pre-emptive action in order to prevent countries from meaningfully challenging the illegal actions of it under the WTO’s dispute resolution mechanism. By refusing to nominate new members to the Appellate Body, the highest judicial body at the WTO for adjudicating trade disputes.
· It has recently dealt a deep blow to multilateral dispute resolution by not allowing the meetings of the Dispute Settlement Body (DSB) to proceed on the pretext that the US does not recognise the diplomats at the WTO.
· To undermine the concept of special and differential treatment (S&DT) during trade negotiations, a fundamental pillar of both the GATT and the WTO, the US wants the same rules to apply to the developed countries and to some of the larger developing countries.
· Developing countries would be compelled to give up the data generated in their country for free to the digital giants in the developed countries. This would fuel the business of the digital giants, without any benefit accruing to the developing countries.
India’s role for stable economy
· India needs to stood up firmly against US and has also succeeded in mobilising about a dozen developing countries to oppose any dilution of S&DT.
· India needs to explain the dangers of the US strategy to other developing countries and get them on its side. It has to effectively apply the essence of Non-aligned movement.
· India should garner the support of Developed countries like Russia, Israel, Canada to counter the measures of US democratically at the same time maintain its soft power matrix at the global arena.
Madhaba Chandra gharai 6 years
Sir check it
IAS Parliament 6 years
Try to include some instances like improper functioning of Dispute settlement body, undermining the concept of Special and differential treatment etc. Keep Writing.
