Is WTO dead in Trump era? PM Modi’s economic adviser says ‘rule-based system still relevant’ – Firstpost

Is WTO dead in Trump era? PM Modi’s economic adviser says ‘rule-based system still relevant’ – Firstpost


PM-EAC Chairman S Mahendra Dev tells Firstpost that globalisation is in retreat amid rising protectionism but argues that a rule-based multilateral trade system remains preferable to fragmented bilateral deals.

As global trade increasingly shifts towards protectionism and bilateral arrangements, the relevance of the World Trade Organization (WTO) remains under question. However, S Mahendra Dev, Chairman of the Prime Minister’s Economic Advisory Council (PM-EAC), said that a rule-based global trade system is still relevant, even in an era marked by trade tensions and political shifts, including under Donald Trump.

Speaking to Firstpost, Dev responded to remarks by the US Commerce Secretary Howard Lutnick at the World Economic Forum in Davos, who said that globalisation has failed us.

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“Globalisation existed for about three decades, and now there is a retreat and rising protectionism,” Dev said. “But I still feel that a rule-based WTO system is better than protectionism. India also believes that. This is cyclical in nature. You never know—in the future, rule-based systems and a more open form of globalisation may return. These things evolve over time.”

Dev acknowledged that the global trading landscape is changing, with countries increasingly relying on free trade agreements (FTAs) and bilateral deals rather than multilateral platforms. This shift has raised questions about whether the WTO’s relevance has diminished.

Asked directly if the WTO has become irrelevant as trade relations turn more bilateral, Dev disagreed. “The WTO is still relevant in some areas. We cannot say it is not important,” he said. “Countries may still come together and agree on rules—whether within the WTO framework or otherwise.”

His remarks come at a time when global trade is under strain from geopolitical rivalries, supply chain reconfigurations, and a renewed emphasis on national interest over multilateral cooperation. While protectionist policies have gained traction in several economies, including the US, Dev suggested that multilateralism could regain prominence as economic cycles and political priorities shift.

According to the PM-EAC Chairman, India continues to view a rules-based global trade order as more stable and predictable than fragmented bilateral arrangements, even as it actively pursues FTAs to safeguard its economic interests in the near term.

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Rajat Mishra leads business news coverage at Firstpost.com. An award-winning business journalist with over seven years of experience, he has worked across some of India’s leading newsrooms. His reporting spans the macroeconomy, financial markets, and India Inc., with a keen focus on decoding complex data and trends for readers.
An alumnus of the AJK Mass Communication Research Centre, Jamia Millia Islamia, Rajat can be followed on X at @RajatMishra9518. For story ideas and pitches, he can be reached at Rajat.Mishra@nw18.com. When not tracking numbers and policy moves, he enjoys wandering the Himalayas and exploring society beyond spreadsheets.

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