Multilateralism
Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT
Meaning
Multilateralism means opening up trade through common rules that all or most nations negotiate together, as they do at the WTO. Every member follows the same rules, so small and developing countries are not left to bargain alone with big powers. At the WTO, decisions are taken by consensus, which means every member has an effective veto.
Example
The WTO Agreement on Fisheries Subsidies was agreed at MC12 (2022). It entered into force on 15 September 2025, after two-thirds of WTO members accepted it. It bans subsidies to illegal, unreported and unregulated fishing for all members that have accepted it.
Don't confuse with
- Regionalism: this means opening up trade only within limited groups through FTAs, such as ASEAN or SAFTA. Jagdish Bhagwati asked whether such deals are "building blocks or stumbling blocks" toward global free trade.
Related concepts
- Multilateral trade agreements
- Rule-based trading regime
- Plurilateral agreement
- Non-discrimination principle
- Most-favoured-nation principle
- National treatment
- Exceptions to MFN
- Enabling clause
- Generalised System of Preferences
- Duty-free quota-free market access