The evolving nature of trade agreements

Key Insight

US unilateral trade pacts challenge WTO norms, prompting strategic recalibration for India

Key Facts

1. Trump-era US trade deals are framed as "bilateral" agreements, distinct from traditional multilateral treaties.
2. These agreements bypass the dispute‑settlement mechanisms of the WTO and are not ratified under GATT provisions.
3. The US has signed over a dozen such unilateral deals since the start of the Trump administration.
4. Critics argue the deals violate the principle of non‑discrimination enshrined in WTO Article I.
5. Legal scholars label the agreements as "legally suspicious" because they lack WTO approval and may breach international law.
6. The shift towards unilateral deals challenges the multilateral trade architecture that India has traditionally supported.

Background

The move reflects a broader global trend where major economies resort to bilateral or unilateral trade pacts, raising questions about the relevance of the WTO system and its impact on India's trade policy and negotiations.

Mains Angle

GS2 – International Economic Relations: Discuss the implications of unilateral US trade agreements on the multilateral trading system and India's strategic response.