1. Support for Liberalisation from International Organisations 🌍🤝

• The liberalisation of foreign trade and investment in India was supported by powerful international organisations, including the World Bank and the International Monetary Fund (IMF). 💼🌏
• These organisations argue that trade barriers are harmful to global economic growth, as they limit access to goods, services, and investment. 🚫💸
• The main aim of these organisations is to encourage all countries to liberalise their policies and remove trade restrictions to foster a more interconnected global market. 🏛️📉
• By promoting free trade, international organisations hope to enhance global economic efficiency and raise living standards. 🌐💡
• They believe that reducing tariffs, quotas, and other trade barriers will lead to more competitive markets and lower prices for consumers. 📉🛒
• The push for liberalisation is often backed by the belief that it can spur economic growth, especially in developing countries, by encouraging foreign direct investment (FDI). 💰🌍

2. Role of the World Trade Organisation (WTO) 🌐⚖️

• The World Trade Organisation (WTO) is one of the key organisations working to liberalise international trade by establishing legal and regulatory frameworks for global commerce. 📜🌍
• WTO was established with the aim to set rules for international trade and ensure that these rules are followed by member countries, creating a more predictable global market. 📝🔍
• Currently, about 160 countries are members of the WTO, all of which are expected to adhere to its rules, making it one of the largest and most influential international organisations. 🌍🤝
• WTO aims to provide a platform for resolving trade disputes, helping to mediate conflicts between countries over trade practices. ⚖️🌍
• The WTO also monitors global trade policies and practices to ensure compliance with agreed trade rules and to prevent unfair trade practices. 🔍📊
• The organisation works to improve transparency in trade policies by requiring member countries to publish their trade regulations and notify any changes to the WTO. 📰🌐
• WTO rules are designed to create a level playing field for all nations, regardless of their economic status, to participate in global trade on equal terms. ⚖️🌏
• Over time, the WTO has evolved to address emerging trade issues, such as e-commerce, intellectual property rights, and environmental concerns. 🌱💻

3. WTO’s Impact on Developed vs. Developing Countries 🌎⚖️

• While WTO aims for free trade, it is often criticised for favouring developed countries that can afford to retain trade barriers while pressuring developing countries to remove theirs. 💵🌍
• Developed countries have managed to retain trade barriers, such as subsidies and tariffs on certain goods, which give them a competitive edge in global markets. 🚫🏛️
• These barriers include agricultural subsidies, which allow producers in developed nations to sell goods at lower prices, undermining farmers in developing countries. 🌾💰
• In contrast, developing countries are pressured to remove their trade barriers to align with WTO rules, leading to the liberalisation of their markets without receiving similar support. 🌍⚖️
• This unequal treatment has led to calls for reforms in the WTO, with developing nations seeking a more level playing field. 🤝🔄
• Developing countries argue that they should be given the same leeway to protect their industries during their own stages of economic development, just as developed countries did in the past. 🏛️💼
• Critics of WTO’s approach argue that the organisation’s policies often prioritize the interests of wealthy nations, resulting in an uneven distribution of benefits from global trade. 💸🌍

4. The Debate on Trade in Agricultural Products 🌾📉

• A key issue in international trade is the debate over agricultural products and the treatment of agricultural subsidies, which create imbalances in global markets. 🌾💰
• Developed countries, like the US and the European Union, heavily subsidize their farmers, providing them with financial support that enables them to sell products at lower prices globally. 🇺🇸💸
• These subsidies have led to an influx of cheap farm products into developing countries, which often results in the destruction of local agricultural industries. 🌍📉
• In countries like India, where agriculture is a primary source of employment and income, these cheap imports severely affect local farmers, who cannot compete with the subsidized prices. 🌱💼
• The low prices of subsidized farm products from developed nations undermine the livelihoods of farmers in developing countries, exacerbating poverty and food insecurity. 🍚⚠️
• Developing countries argue that agricultural subsidies in the developed world distort global trade, calling for a reduction or elimination of these subsidies to ensure fair trade. 🛑🌍
• The WTO has struggled to resolve this issue, with debates surrounding whether subsidies should be allowed in developed countries while pushing for the removal of trade barriers in developing nations. 🌏⚖️
• The agricultural debate highlights the challenges of achieving equitable global trade, where the policies of some countries can undermine the growth and stability of others. 🍽️🌍

5. The Disparity Between Developed and Developing Countries 🏛️💰

• Developing countries argue that they have reduced their trade barriers in compliance with WTO rules, but developed countries continue to provide substantial subsidies to their farmers, maintaining an unfair advantage. 🌍⚖️
• The subsidies provided in developed countries enable their farmers to sell agricultural products at artificially low prices, which harms farmers in developing countries who cannot compete with such pricing. 💵📉
• This results in a significant imbalance in global trade, where the economies of developing countries struggle to compete against subsidized goods from wealthier nations. ⚖️🌏
• Developed countries can flood global markets with cheap goods due to these subsidies, while developing countries see their local industries and agricultural sectors suffer, exacerbating poverty and inequality. 🌱💼
• The pressure on developing countries to reduce trade barriers while facing unfair competition from developed nations’ subsidies creates a growing sense of frustration and resentment. 🛑🌍
• This disparity raises concerns about the sustainability of global trade systems and the ability of developing countries to protect and nurture their industries. 🌾💪
• Calls for reform are growing, with developing countries seeking a more equitable global trade framework that considers the historical context and challenges they face in the competitive global market. 🌍🔄

6. Fairness of WTO Rules: Developing Countries’ Perspective 🤔🌍

• Developing countries are increasingly questioning whether the WTO rules are truly creating fair trade conditions, especially in light of the continuing support for farmers in developed countries. ❓⚖️
• These nations argue that they have adhered to WTO guidelines by removing their trade barriers, yet developed countries have ignored similar rules and continue to provide extensive support to their farmers. 🌍💬
• The debate centers on whether the global trade system is genuinely free and fair, or whether it is disproportionately structured to benefit the wealthier nations at the expense of developing economies. 💬🌎
• Many developing countries believe that the WTO has failed to ensure a level playing field, with the rules of the system favouring those with more economic power and resources. 🌏🔑
• They argue that the trade policies of developed countries undermine their ability to grow and protect local industries, especially in sectors like agriculture, where they face unfair competition from subsidized goods. 🌱💸
• The ongoing dialogue highlights the need for reforms within the WTO to create a more just global trade environment that takes into account the development needs of poorer nations. 🌍🔄
• There is a growing push for global trade rules that allow developing countries to safeguard their industries, promote sustainable growth, and close the disparity gap with developed countries. 🌱🏛️