INTERNATIONAL RELATIONSHIP
4 . Important International institutions, agencies, and
for- their structure, mandate.
NAM
NAM was founded and held its first conference (the Belgrade Conference) in 1961 under the leadership of
India, Yugoslavia, Egypt, Ghana, and Indonesia.
It has 120 members as of 2018 comprising 53 countries from Africa, 39 from Asia, 26 from Latin America
and the Caribbean and 2 from Europe (Belarus, Azerbaijan). There are 17 countries and 10 international
organizations that are Observers at NAM.
Key principles of NAM: The policy of non-alignment was based on the five principles of Panchasheel.
These principles were
mutual respect for each other’s territorial integrity and sovereignty;
non-interference in each other’s military and internal affairs;
mutual non-aggression;
equality and mutual benefit;
peaceful coexistence and economic cooperation
Is NAM losing relevance?
Arguments in favour
NAM is seen as based on alignments rooted in the legacies of colonialism and the ideology of the Cold
War. With the end of cold war and changing world order NAM is seen as losing its relevance.
Several members of the NAM including India have been strengthening their engagement with the
developed world to invite capital, technology, better management practices, larger markets etc to improve
the economic conditions of their citizens. These reduce scope for effective agenda for NAM bringing
countries together.
Confidence in and credibility of the movement has suffered in recent years because it has been relegated to
the status of a talk-shop as it has been unable to adequately address problems and threats that accost the
developing world.
Also, there has been negligible agreement between members on policies required to address challenges
related to ensuring peace, security and economic development of developing countries.
Alternative platforms like BRICS, IBSA, SCO and G20 etc have emerged with overlapping agendas,
reducing need and scope for NAM.
Arguments against
The philosophy and ideology of ''Non alignment'' lays emphasis on strategic independence and autonomy,
and the ''Non-Aligned Movement'' seeks to take a collective position on challenges faced by the developing
world. These principles shall always remain relevant.
NAM was created to provide a platform for autonomy of policy for newly independent and developing
nations, an objective that remains relevant today.
, Developing countries share much in common, have similar experiences and shared aspirations, even as
they represent diverse peoples, circumstances and levels of development. NAM is a large grouping that can
shape global responses to such challenges, as it has done in the past.
NAM remains an important platform for the leaders of the countries to meet and discuss with each other
on issues of bilateral, regional and international concern.
Way forward
World is more interconnected and interdependent than ever before. Climate change, environmental
degradation, terrorism, radicalisation, poverty, public health emergencies etc are challenges that can only be
faced together, not when world is divided. It requires collaboration, not coercion. In short, effective
multilateralism remains the only answer. NAM can be that answer.
India called for the need for NAM keep pace with the changing times and reform and revitalise the
current arrangements and working methods. This will allow NAM to pursue a positive and forward-
looking and focused agenda.
NAM should not be positioned as ‘for’ or ‘against’ any ideology or groups of nations. Rather NAM
should identify select cross-sectoral challenges that require immediate attention. E.g. counter-terrorism,
global governance reform, sustainable development, and South-South cooperation.
A democratic, effective, flexible, credible, transparent and representative, multilateral organisation like
NAM is imperative for 21st century world order.
WTO
WTO and its evolution
WTO i.e. World Trade Organization was set up under Marrakesh Treaty (1994) as a result of Uruguay
Round (1986-1994).
WTO as an organization was expected to play larger role for improved living standards, employment
generation, trade expansion with increasing share for developing countries and overall sustainable
development.
Basic principles of trade liberalizations that were to be followed were
Non-discrimination–Countries will not discriminate one from another. It had be achieved through Most
Favored Nations status i.e. neutral trading relations and National treatment to non-domestic producers.
Reciprocity– The concessions conferred by countries had to be mutual.
These principles are implemented through Ministerial Conferences, taking consensus-based decisions based
on ‘one country one vote which demonstrates democratic structure and processes of WTO. Also, a dispute
resolutions mechanism provides protection against arbitrariness.
Organizational Structure of WTO
Ministerial Conference - It Includes all members, meets once in 2 year and the 11th Ministerial Conference was held in Argentina
General Council – It acts a Dispute Settlement Body and Trade Policy Review Body.
Reasons for Crumbling Of WTO
Changing world order: The unipolar world under US was represented through institutions like WTO. Trade
during this phase became rule based in nature which favored the west. But the world order is now witnessing
, structural changes with rise of developing countries and their increasing share in world trade. This is
perceived by US and EU as unfavorable whom they have attacked by resorting to policies of protectionism.
E.g. China via trade war, Solar panel case against India in Dispute Settlement Body.
Process Loopholes: The negotiation process prime facie seems democratic but Ministerial Conferences are
accused of being opaque and overly technical. The green room meetings prohibit participation of majority
of countries. It has proven to be disproportionately advantageous to developed countries. Moreover,
consensus-based rule making has become a root cause in stagnation in reforms.
Nature of agreements: Agreements signed under WTO are alleged to be discriminatory and exclusionary in
functioning. DDA (Doha Development Agenda) has still not been able to provide permanent solution to
subsidies under domestic support. WTO do not have any agreement to deal with digital enabled trade i.e. e-
commerce.
TRIPS problem - Developed countries oppose generic medicines, compulsory license and import
substitution. On the other hand, developing countries cite public health concerns and level allegations of ever-
greening against pharmaceutical companies.
Dispute Resolution: The dispute resolution mechanism is costly and lengthy. It is majorly resorted to by
developed countries and developing countries are victims to the mechanism. There is politicization of the
Appellate Body appointment and reappointment process.
Why WTO remains relevant?
Amidst all these challenges that WTO faces, we cannot deny the role it has played in integrating and opening
the world trade.
WTO regulates 98% of global trade flows. The average value of tariffs has reduced by 85% since 1942. Tariff
reduction along with technological advances have driven extra-ordinary expansion of global trade.
Trade as a share of GDP has grown from 24% in 1960 to 60% in 2015. Expansion of trade has fueled
economic growth, created jobs and increased household incomes around the world.
An ever-deepening rules-based system—notably under the GATT and WTO—brought more openness,
transparency, and stability.
Trade act as a powerful force too for inclusive Growth, by lowering poverty and by opening opportunities
for small firms, women, farmers as well as fishermen.
As nations’ economies have become more and more inter-dependent, breakdown of a trade organization will
be major blow to international trade order.
Way Forward
Plurilateral trade negotiations- As WTO is a member led organization, all countries i.e. developing and
developed have to join hands to improve its structure and processes. WTO should move to Plurilateral
negotiations where like-minded countries can come forward to discuss issues specific to them and form rules
with respect to the common issue.
Services today form a bulk of trade i.e. two third of global GDP, yet global trade policy lags behind in
services facing higher barriers than goods. To rectify these, GATS has to become more open and transparent.
It has to address monopolistic practices, financial regulations and irregular immigration.
Trade related policies for inclusiveness-
, All member countries need to understand different levels of development of different countries. On the
basis of this, a consultation committee has to be formed. The negotiation meetings have to be more
open, transparent and inclusive.
The agreements on agriculture should be restructured to address concerns of developing countries and
Least developed countries.
Social security laws, skill upgradation, flexible mobility of workers within the international agreements
will impart more stability and sustainability to the multilateral trading system.
Collective BargainLike Minded Groups like G-33, African community has to increase their collective
bargain in order to demand favorable provision in agreements on agriculture, services, intellectual property
etc. The dispute mechanism should become more powerful and member driven.
Change in the mindset of developed countries - Developed countries like US and EU have to be convinced
of the larger role WTO played in their growth and maintenance of open trade system. The time has come for
the emerging economies and the developing world to have a greater say in how to shape multilateralism and
its institutions. The developed nations have to realize this truth.
Dispute Settlement System
While the descent of the WTO Appellate Body represents a turbulent period in the history of trade
disputes adjudication, it by no means spells the end of the WTO. Evaluate. (250 words)
WTO DRM phle panel committee of 3 member appoint krta h then ab 7 member appellate body banata h jo
panel ki report ko check krta h ,then apni report deta h
WTO Appellate Body:
The Appellate Body was set up in 1995 as a “safety valve” against wrong panel reports in return for the
membership agreeing to adopt reports using the “reverse consensus” rule instead of the “positive
consensus” rule.
This Appellate body was established under Article 17 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes (DSU). The Appellate Body has its seat in Geneva, Switzerland.
Under the erstwhile positive consensus rule, reports issued by panels composed to hear disputes under
GATT, could be adopted only if each of the contracting states favoured its adoption. This effectively
handed a veto to the losing state.
It is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by
WTO Members.
The Appellate Body can uphold, modify or reverse the legal findings and conclusions of a panel.
Appellate Body Reports once adopted by the Dispute Settlement Body (DSB), must be accepted by the
parties to the dispute.
Consequences of fall of Appellate Body:
The fall of the Appellate Body effectively marks a return to the previous system as it hands states an
opportunity to appeal an adverse panel ruling and effectively indefinitely delay its adoption.
The majority of the disputes at the WTO concern trade remedy matters.In such matters, if a state violates the
rules, for example those concerning dumping of goods or grant of subsidies, affected states can without
recourse to the WTO, adopt countermeasures such as imposition of anti-dumping and countervailing duties.
4 . Important International institutions, agencies, and
for- their structure, mandate.
NAM
NAM was founded and held its first conference (the Belgrade Conference) in 1961 under the leadership of
India, Yugoslavia, Egypt, Ghana, and Indonesia.
It has 120 members as of 2018 comprising 53 countries from Africa, 39 from Asia, 26 from Latin America
and the Caribbean and 2 from Europe (Belarus, Azerbaijan). There are 17 countries and 10 international
organizations that are Observers at NAM.
Key principles of NAM: The policy of non-alignment was based on the five principles of Panchasheel.
These principles were
mutual respect for each other’s territorial integrity and sovereignty;
non-interference in each other’s military and internal affairs;
mutual non-aggression;
equality and mutual benefit;
peaceful coexistence and economic cooperation
Is NAM losing relevance?
Arguments in favour
NAM is seen as based on alignments rooted in the legacies of colonialism and the ideology of the Cold
War. With the end of cold war and changing world order NAM is seen as losing its relevance.
Several members of the NAM including India have been strengthening their engagement with the
developed world to invite capital, technology, better management practices, larger markets etc to improve
the economic conditions of their citizens. These reduce scope for effective agenda for NAM bringing
countries together.
Confidence in and credibility of the movement has suffered in recent years because it has been relegated to
the status of a talk-shop as it has been unable to adequately address problems and threats that accost the
developing world.
Also, there has been negligible agreement between members on policies required to address challenges
related to ensuring peace, security and economic development of developing countries.
Alternative platforms like BRICS, IBSA, SCO and G20 etc have emerged with overlapping agendas,
reducing need and scope for NAM.
Arguments against
The philosophy and ideology of ''Non alignment'' lays emphasis on strategic independence and autonomy,
and the ''Non-Aligned Movement'' seeks to take a collective position on challenges faced by the developing
world. These principles shall always remain relevant.
NAM was created to provide a platform for autonomy of policy for newly independent and developing
nations, an objective that remains relevant today.
, Developing countries share much in common, have similar experiences and shared aspirations, even as
they represent diverse peoples, circumstances and levels of development. NAM is a large grouping that can
shape global responses to such challenges, as it has done in the past.
NAM remains an important platform for the leaders of the countries to meet and discuss with each other
on issues of bilateral, regional and international concern.
Way forward
World is more interconnected and interdependent than ever before. Climate change, environmental
degradation, terrorism, radicalisation, poverty, public health emergencies etc are challenges that can only be
faced together, not when world is divided. It requires collaboration, not coercion. In short, effective
multilateralism remains the only answer. NAM can be that answer.
India called for the need for NAM keep pace with the changing times and reform and revitalise the
current arrangements and working methods. This will allow NAM to pursue a positive and forward-
looking and focused agenda.
NAM should not be positioned as ‘for’ or ‘against’ any ideology or groups of nations. Rather NAM
should identify select cross-sectoral challenges that require immediate attention. E.g. counter-terrorism,
global governance reform, sustainable development, and South-South cooperation.
A democratic, effective, flexible, credible, transparent and representative, multilateral organisation like
NAM is imperative for 21st century world order.
WTO
WTO and its evolution
WTO i.e. World Trade Organization was set up under Marrakesh Treaty (1994) as a result of Uruguay
Round (1986-1994).
WTO as an organization was expected to play larger role for improved living standards, employment
generation, trade expansion with increasing share for developing countries and overall sustainable
development.
Basic principles of trade liberalizations that were to be followed were
Non-discrimination–Countries will not discriminate one from another. It had be achieved through Most
Favored Nations status i.e. neutral trading relations and National treatment to non-domestic producers.
Reciprocity– The concessions conferred by countries had to be mutual.
These principles are implemented through Ministerial Conferences, taking consensus-based decisions based
on ‘one country one vote which demonstrates democratic structure and processes of WTO. Also, a dispute
resolutions mechanism provides protection against arbitrariness.
Organizational Structure of WTO
Ministerial Conference - It Includes all members, meets once in 2 year and the 11th Ministerial Conference was held in Argentina
General Council – It acts a Dispute Settlement Body and Trade Policy Review Body.
Reasons for Crumbling Of WTO
Changing world order: The unipolar world under US was represented through institutions like WTO. Trade
during this phase became rule based in nature which favored the west. But the world order is now witnessing
, structural changes with rise of developing countries and their increasing share in world trade. This is
perceived by US and EU as unfavorable whom they have attacked by resorting to policies of protectionism.
E.g. China via trade war, Solar panel case against India in Dispute Settlement Body.
Process Loopholes: The negotiation process prime facie seems democratic but Ministerial Conferences are
accused of being opaque and overly technical. The green room meetings prohibit participation of majority
of countries. It has proven to be disproportionately advantageous to developed countries. Moreover,
consensus-based rule making has become a root cause in stagnation in reforms.
Nature of agreements: Agreements signed under WTO are alleged to be discriminatory and exclusionary in
functioning. DDA (Doha Development Agenda) has still not been able to provide permanent solution to
subsidies under domestic support. WTO do not have any agreement to deal with digital enabled trade i.e. e-
commerce.
TRIPS problem - Developed countries oppose generic medicines, compulsory license and import
substitution. On the other hand, developing countries cite public health concerns and level allegations of ever-
greening against pharmaceutical companies.
Dispute Resolution: The dispute resolution mechanism is costly and lengthy. It is majorly resorted to by
developed countries and developing countries are victims to the mechanism. There is politicization of the
Appellate Body appointment and reappointment process.
Why WTO remains relevant?
Amidst all these challenges that WTO faces, we cannot deny the role it has played in integrating and opening
the world trade.
WTO regulates 98% of global trade flows. The average value of tariffs has reduced by 85% since 1942. Tariff
reduction along with technological advances have driven extra-ordinary expansion of global trade.
Trade as a share of GDP has grown from 24% in 1960 to 60% in 2015. Expansion of trade has fueled
economic growth, created jobs and increased household incomes around the world.
An ever-deepening rules-based system—notably under the GATT and WTO—brought more openness,
transparency, and stability.
Trade act as a powerful force too for inclusive Growth, by lowering poverty and by opening opportunities
for small firms, women, farmers as well as fishermen.
As nations’ economies have become more and more inter-dependent, breakdown of a trade organization will
be major blow to international trade order.
Way Forward
Plurilateral trade negotiations- As WTO is a member led organization, all countries i.e. developing and
developed have to join hands to improve its structure and processes. WTO should move to Plurilateral
negotiations where like-minded countries can come forward to discuss issues specific to them and form rules
with respect to the common issue.
Services today form a bulk of trade i.e. two third of global GDP, yet global trade policy lags behind in
services facing higher barriers than goods. To rectify these, GATS has to become more open and transparent.
It has to address monopolistic practices, financial regulations and irregular immigration.
Trade related policies for inclusiveness-
, All member countries need to understand different levels of development of different countries. On the
basis of this, a consultation committee has to be formed. The negotiation meetings have to be more
open, transparent and inclusive.
The agreements on agriculture should be restructured to address concerns of developing countries and
Least developed countries.
Social security laws, skill upgradation, flexible mobility of workers within the international agreements
will impart more stability and sustainability to the multilateral trading system.
Collective BargainLike Minded Groups like G-33, African community has to increase their collective
bargain in order to demand favorable provision in agreements on agriculture, services, intellectual property
etc. The dispute mechanism should become more powerful and member driven.
Change in the mindset of developed countries - Developed countries like US and EU have to be convinced
of the larger role WTO played in their growth and maintenance of open trade system. The time has come for
the emerging economies and the developing world to have a greater say in how to shape multilateralism and
its institutions. The developed nations have to realize this truth.
Dispute Settlement System
While the descent of the WTO Appellate Body represents a turbulent period in the history of trade
disputes adjudication, it by no means spells the end of the WTO. Evaluate. (250 words)
WTO DRM phle panel committee of 3 member appoint krta h then ab 7 member appellate body banata h jo
panel ki report ko check krta h ,then apni report deta h
WTO Appellate Body:
The Appellate Body was set up in 1995 as a “safety valve” against wrong panel reports in return for the
membership agreeing to adopt reports using the “reverse consensus” rule instead of the “positive
consensus” rule.
This Appellate body was established under Article 17 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes (DSU). The Appellate Body has its seat in Geneva, Switzerland.
Under the erstwhile positive consensus rule, reports issued by panels composed to hear disputes under
GATT, could be adopted only if each of the contracting states favoured its adoption. This effectively
handed a veto to the losing state.
It is a standing body of seven persons that hears appeals from reports issued by panels in disputes brought by
WTO Members.
The Appellate Body can uphold, modify or reverse the legal findings and conclusions of a panel.
Appellate Body Reports once adopted by the Dispute Settlement Body (DSB), must be accepted by the
parties to the dispute.
Consequences of fall of Appellate Body:
The fall of the Appellate Body effectively marks a return to the previous system as it hands states an
opportunity to appeal an adverse panel ruling and effectively indefinitely delay its adoption.
The majority of the disputes at the WTO concern trade remedy matters.In such matters, if a state violates the
rules, for example those concerning dumping of goods or grant of subsidies, affected states can without
recourse to the WTO, adopt countermeasures such as imposition of anti-dumping and countervailing duties.
