Continued protectionism, unilateral measures may lead to “serious” world recession: Piyush Goyal

NEW DELHI: Commerce and Industry Minister Piyush Goyal on Thursday asked for holistic and comprehensive reforms of the World Trade Organisation (WTO) keeping in mind the inequality between developed and developing countries. He said that instead of going for a piecemeal reform, the members should take on board issues of all countries of the WTO. He also said if protectionism and unilateral measures continue then “I think we are looking at a serious world recession and no country will be out of that problem”.

“When we look at reforming the WTO, (it should be done) holistically and comprehensively. It cannot be pick and choose,” Goyal said at an event on South-South and Triangular Cooperation here.

Stating that such issues been pending for long, he said: “I do hope that as we look at reforming the WTO, a little bit more relevance to today and 21st century realities will come into play”.


His statement assumes significance in the wake of the WTO facing a crisis with its dispute settlement system having been crippled by the US which has blocked the appointment of judges in its appellate body. It also wants changes in norms for special and differential treatment (S&DT) provisions for developing and poor countries.

“You really cannot have free trade between the country having per capita GDP of $1,000, or $2,000 or $4,000 and other of $60,000 and $80,000,” he said.

He said it is a “ridiculous argument” to say that two trading partners with this level of development should compete equally in global markets.

Emphasising that currently India is one of the most open economies and no developed country can say otherwise, Goyal said that some developed countries claim to be an open economy but they impose non-tariff barriers and “make it worse than a closed economy”.

“Closing the door through surreptitious manner is not good,” the minister said adding people who are following protectionism “give us huge amount of sermons” and asked all countries to engage frankly with each other in both diplomatic and trade relations.