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Meet the world's toughest trade negotiator. It's not Donald Trump. – POLITICO

Meet the world's toughest trade negotiator. It's not Donald Trump. – POLITICO
Meet the world's toughest trade negotiator. It's not Donald Trump. – POLITICO

 


Indian Prime Minister Modi and Goyal have played no small role in eroding the foundations of the system. New Delhi is flexing its economic and geopolitical muscles as the West focuses on the Indo-Pacific and India moves toward becoming the world’s third-largest economy, which is expected to happen by the end of the decade.

The main issue is the system itself, WTO Director-General Ngozi Okonjo-Iweala warned in a speech to business leaders ahead of the organization's ministerial meeting in March. We are at a turning point. Are we going to continue to have a reasonably open, integrated and global economy, or are we going to move towards an increasingly fragmented and divided economy?

India desperately wants the WTO, which has long operated on the principle of consensus among its roughly 160 members, not to become a forum where willing allies can cobble together more modest deals, said Keith Rockwell, an international fellow at the Wilson Center and a former chief WTO spokesman. But that is the direction it is headed, and it is because of them.

India's aggressive approach could backfire if New Delhi does not adopt a more conciliatory stance in negotiations with its Western partners and at the WTO, some say. | Giuseppe Cacace/Getty Images

In Abu Dhabi, Goyal arrived at the cavernous, over-air-conditioned conference centre like a rock star, several days late and surrounded by an entourage of aides and Indian media snapping pictures of his thousand-watt smile.

In the days that followed, he exploited the WTO's need for consensus on various issues to serve New Delhi's political and economic interests. For most negotiators, simply maintaining the organization's status quo would have been considered a success. India's trade chief would not let them.

The shadow of the past

For decades, India resisted entering into trade deals, reluctant to expose its nascent industry to foreign competition. That situation began to gradually change after Modi came to power in 2014, when India struck deals with Australia, the United Arab Emirates and a small European group.

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