US Approach to Multilateral Affairs

The United States federal government under President Donald Trump has generally taken a non-cooperative stance towards multilateral arrangements, often exiting agreements or deeming them disadvantageous. However, in a rare constructive move, Washington submitted a memorandum to the World Trade Organization (WTO), highlighting areas of concern and potential reform.

WTO Engagement and Issues

• The US has paid its dues for 2024 and 2025, indicating hope for the WTO's potential recovery.
• Both the Trump and Biden administrations have shown reluctance in fully supporting the WTO, with Biden even refusing to acknowledge a ruling against the US on import restrictions.

US Concerns on WTO Operations

Washington's memorandum outlines several concerns:

• Self-identification as "developing" economies: The US believes that countries like China have exploited these privileges for too long and wants them restricted to the least developed economies.
• Transparency in export subsidies: The US calls for more transparent investigations, especially targeting China's opaque subsidy systems.

Challenges in Building Coalitions

• The US struggles to form broad coalitions for change, instead attempting to unilaterally shift governance structures.
• There is criticism of the US's attack on the "most favoured nation" (MFN) principle, a fundamental aspect of multilateral trade agreements.

Implications for India

• India should oppose any move to undermine the MFN principle and the broad use of "national security" as a reason for tariff barriers.
• However, India should recognize the popularity of some US demands, such as the acceptance of plurilateral agreements, and reconsider its frequent use of vetoes at the WTO.