Global trade witnessing moment of quiet but consequential churn: Tharoor
Against a backdrop of rising geopolitical tensions, regulatory divergence, and deepening uncertainty in global trade, leading policymakers and experts called for urgent, coordinated efforts to revitalise the World Trade Organisation (WTO) at a high-level dialogue in New Delhi.
The roundtable, titled “MC14 Outcomes and the Future of the Multilateral Trading System”, was jointly organised by the Chintan Research Foundation (CRF) and CUTS International at the India International Centre.
Chairing the session, Shashi Tharoor emphasised that the current challenges facing the WTO go beyond routine negotiating deadlocks and reflect deeper structural shifts in the global trading system. He highlighted growing geopolitical fragmentation, declining trust among nations, and the shift from universal consensus to more flexible, plurilateral approaches.
He stressed that while MC14 may not have delivered major outcomes, it should not be viewed as a failure, but as a reflection of a transforming multilateral order.
Opening the discussion, Pradeep S Mehta, Founder Secretary General, CUTS International, described MC14 as a moment of “disappointment without disruption.” While no major breakdown occurred, he noted that the absence of clear outcomes has intensified questions about the WTO’s relevance.
He highlighted that the system has historically enabled stability, job creation, and development, particularly for developing countries, and must now adapt through more flexible approaches such as variable geometry.
Delivering the keynote address, former WTO Director-General Pascal Lamy pointed to a fundamental shift in global trade dynamics, from protectionism to what he termed “precautionism.”
He highlighted that rising regulatory divergence across countries is increasingly shaping trade flows and noted that many of today’s challenges lie beyond the WTO’s traditional mandate. He called for reform of both the WTO’s rulebook and its governance structures to keep pace with these evolving realities.
Adding a policy perspective, Montek Singh Ahluwalia emphasised the need for pragmatic and realistic approaches to trade policy. He noted that the WTO cannot be expected to resolve macroeconomic imbalances and stressed the importance of maintaining guardrails while aligning trade policy with domestic competitiveness and investment strategies.
Shishir Priyadarshi, President of CRF, underlined that while the WTO remains indispensable, particularly for developing countries, its credibility has eroded over time. He pointed to the paralysis of the dispute settlement mechanism as a major concern and warned that, without enforceability, global trade risks would be shaped by power rather than rules.
He also highlighted the need to balance flexibility with coherence, cautioning against fragmentation arising from unchecked plurilateral approaches.
Speakers noted that the global trading environment is becoming increasingly complex, marked by regulatory divergence, strategic competition, and shifting economic priorities. The discussion underscored that the current moment reflects not just a temporary impasse, but a broader transformation in the global trade architecture.
At the same time, participants reaffirmed that the WTO remains indispensable by providing a rules-based framework that ensures predictability and stability in global trade. Flexible arrangements were seen as pragmatic interim solutions, though not substitutes for a cohesive multilateral system.
Concluding the discussion, there was broad agreement that the WTO stands at a crossroads. Participants emphasised that this is less a moment of crisis and more a moment of choice, between drift and reform,and that rebuilding trust will be essential to ensuring the system’s continued relevance.
