India Opposes Conditional MFN Treatment
Union Commerce and Industry Minister Piyush Goyal has firmly stated that India cannot support making the Most-Favoured-Nation (MFN) treatment conditional on obligations chosen by select members of the World Trade Organisation (WTO).
Speaking at the G20 Trade Ministers' Meeting Session in Milwaukee, Wisconsin, Goyal emphasized the core principle of MFN: it guarantees that the smallest trader receives the same terms as the largest. He argued that preserving this balance is essential to reinforcing confidence, predictability, and inclusiveness within the multilateral trading system.
"At the G20 Trade Ministers' Meeting Session on the Most-Favoured-Nation Principle, I stressed that the MFN treatment guarantees that the smallest trader receives the same terms as the largest," Goyal said in a post on X. He reiterated that India cannot support making MFN conditional on obligations chosen by some WTO members.
Addressing Excess Capacity and Trade Distortions
During the concluding day of the G20 Trade Ministers’ Meeting, Goyal called for a WTO-compliant approach to tackle trade distortions and excess capacity. He addressed a session on structural excess capacity and production, stating that corrective measures against unfair market practices must strictly adhere to established multilateral rules rather than unilateral interventions.
Goyal noted that India shares concerns with many WTO members regarding trade-distorting support in some economies, which can lead to dumping and predatory pricing. However, he clarified that these issues are best addressed through WTO-consistent measures, such as anti-dumping and countervailing duties, which are based on evidence and subject to judicial review.
India’s Manufacturing Position
Clarifying India’s standing in global manufacturing, Goyal highlighted that India operates as a domestic-demand-driven economy catering to 1.4 billion people. He stated that India does not possess structural excess capacity in the sectors identified by the G20 Presidency.
"Industrial capacity in itself does not cause problems, whereas distortions emerge when geographical concentration stems from hidden subsidies," Goyal explained. He added that while diversification of production and supply chains is a legitimate objective, it cannot be used as a pretext for measures outside WTO rules or for shifting the burden of adjustment onto developing countries, which must retain policy space to industrialise.
Forced Labour and Dispute Settlement
On the issue of eliminating forced labour in global supply chains, Goyal affirmed that India’s stance remains absolute under Article 23 of the Constitution. He noted that India has ratified ILO Conventions 29 and 105 and amended its Foreign Trade Policy in July 2026 to bar imports made with forced labour.
Additionally, Goyal demanded the restoration of the two-tier dispute settlement mechanism and the preservation of special and differential treatment for developing nations, underscoring India’s reliance on a transparent and non-discriminatory trade framework.