How can India balance its commitment to a WTO-centred multilateral trading system with the growing trend of bilateral and plurilateral trade deals?

At the G20 Trade Ministers' Meeting in Milwaukee (2026), India called for a rules-based, non-discriminatory trading system "with the WTO at its core". In the same visit it worked to finalise an interim trade deal with the U.S. [1]. The two tracks can support each other if India treats bilateral deals as a bridge back to the WTO, not a substitute for it.

Why the balance is under strain

• No working WTO court: The Appellate Body has not functioned since 11 December 2019 [2]. Even a winning case cannot be enforced.
• Unilateral tariffs: The deal India reached with the U.S. cut tariffs on USD 30.94 billion of Indian exports from 50% to 18%. That relief came from a bilateral deal, not from the WTO [4].
• Weakening of the MFN rule (equal tariffs for all WTO members): India agreed to cut tariffs on all U.S. industrial goods [3]. Other members do not get this preference.
• Stalled rule-making: The WTO's e-commerce moratorium lapsed on 30 March 2026 [5]. Members could not agree at MC14.

How India can balance the two tracks

• Bilateral deals as stepping stones: Frame the interim deal as a step towards a full Bilateral Trade Agreement (BTA) and keep it consistent with GATT Article XXIV [1].
• Protect the vulnerable: Seek zero tariffs for textiles, leather and artisanal goods, which are still at 18% [3]. Also keep safeguards for oilseed and maize farmers.
• "No new tariffs" clause: Borrow the G20's 2008 pledge not to add new trade barriers for 12 months [6] and write a similar standstill into the BTA.
• Revive dispute settlement: Use the G20 and the WTO General Council to push Appellate Body reform. The WTO has agreed to continue these consultations after MC14 [2].
• Conditional plurilaterals: Join open, transparent plurilaterals only when they protect policy space for developing countries [1]. On e-commerce, link any new moratorium to firm development commitments [5].
• Build Global South coalitions: Use the goodwill from India's 2023 Presidency, when the African Union joined the G20 [6], to defend the MFN principle.

India needs both tracks. Bilateral deals give quick market access, and the WTO gives lasting rules. India should run the two in parallel, keep its deals WTO-consistent, protect labour-intensive sectors, and lead reform of the WTO's dispute system. Doing so fits SDG 17.10, which calls for a universal, rules-based and equitable trading system.