India likely to protest US proposal to dismantle most-favoured-nation mechanism: Report

India is yet to formally register its dissent at WTO, however, a New Delhi official said any such move will be opposed at the trade body.

India is set to oppose a US move against the most-favoured-nation obligation that ensures stable and non-discriminatory tariff regime, a report by Business Standard said on December 18.

The US is set to table its proposal at the World Trade Organization, saying that the mechanism has failed reflect the economic realities, the newspaper said.

Washington argued that MFN principle is “unsuitable for this era” and it prevents nations from optimizing their economic ties to benefit both parties, BS reported citing US’ communication to the world trade body.

“Put differently, MFN impedes welfare-enhancing liberalisation. It pushes members to engage in one venue—the WTO— and attempt to develop a one-size-fits-all approach,” BS cited US as saying.

India is yet to formally register its dissent at WTO, however, a New Delhi official said any such move will be opposed at the trade body.

WTO members are set to meet in March next year for a ministerial meeting in Cameroon, where global body’s reform is likely to be taken up for discussion, BS said.