Between GATT and WTO
When the General Agreement on Tariffs and Trade was made after World War II the world was trying to rebuild. At that time trade was seen as a way to connect nations not divide them. Years later that connection became more structured with the World Trade Organization in 1995. The World Trade Organization promised rules, fair dispute settlement and a fair chance for all countries.
India joined the World Trade Organization system with hope. On paper India is part of the trading order. Are we really ready to compete in the World Trade Organization?
India’s export story is often about potential. Potential is not enough to win markets. High costs for moving goods crowded ports, delays in rules and uneven quality standards make Indian goods more expensive and less reliable for buyers. Indian entrepreneurs are capable and innovative. However, the system around them slows them down. Competing globally needs speed, reliability and scale. These are areas where India still has gaps in the World Trade Organization.
Another challenge is our comfort at home. India’s big market is a strength. It helps businesses survive without chasing markets. This comfort can limit our ambition. Many economies that did well in trade had to look. India though can rely on people buying at home. So India’s role in production networks is limited compared to India’s economy size in the World Trade Organization.
These weaknesses show up in India’s Balance of Payments. India imports more than it exports, in energy, technology and capital goods. Services, exports and remittances help but trade deficit is a problem. This imbalance is not about numbers. It reflects issues like productivity, technology dependence and competitiveness in the World Trade Organization.
Policies have tried to fix these issues. Sometimes India made its currency cheaper to make exports cheaper. Cheaper is not always competitive. Without quality and efficiency price changes only give relief. The 1991 reforms opened India to the world and Special Economic Zones were created to boost exports. These measures helped in some areas. They did not change the whole industrial landscape.
The global trade environment is changing. The World Trade Organization’s power has changed. Big nations make trade rules through deals and strategic agreements. In this world negotiation and preparation matter more than ever. India’s careful trade diplomacy is understandable. It raises questions about whether India’s shaping the World Trade Organization system or just adjusting to it.
India stands at a crossroads. India is not isolated. India is not fully empowered either. India participates in trade. India’s readiness is incomplete. To move forward India must improve infrastructure invest in quality and innovation integrate more into trade and negotiate trade with confidence in the World Trade Organization.
The shift from GATT to the World Trade Organization was, about adapting to a world. For India that adaptation is still happening. The real challenge is not joining the World Trade Organization system. The real challenge is being ready to succeed in the World Trade Organization.
Abu Zaid Kichloo, an undergraduate student at Aligarh Muslim University (AMU).
