- Why in news
- On 2 October 2026, Commerce Minister Piyush Goyal spoke on the concluding day of the G20 Trade Ministers' Meeting in Milwaukee, USA. He set out India's positions on excess capacity, the MFN principle and forced labour.
- What it is
- The G20 is a forum of major economies. Its trade ministers meet under each year's presidency to discuss trade policy and the WTO system. The Most-Favoured-Nation (MFN) principle requires a WTO member to give all members the same trade terms it gives its best-treated partner.
- Host and presidency
- The meeting was held in Milwaukee, USA, under the US G20 Presidency. The UK holds the presidency in 2027.
- MFN principle
- India called MFN a key guarantee of a rules-based system. It ensures the same terms for the smallest and the largest trader.
- Dispute settlement
- India called for restoring the two-tier dispute settlement system of the WTO, that is, panels plus an Appellate Body.
- Role of ILO
- India said the ILO is the competent, universal and tripartite body for labour standards. The ILO is a UN agency.
Don’t confuse with MFN vs special and differential treatment: MFN means equal treatment among all members. Special and differential treatment gives developing countries extra flexibility and longer timelines.
Don’t confuse with ILO Convention 29 vs 105: Convention 29 concerns forced or compulsory labour. Convention 105 concerns the abolition of forced labour.
International bodies and relations: the largest group of news questions in Prelims (61 since 2013), often about background, members and location. In Mains, 27 news-triggered questions, mostly on India's interests.
Why it matters
- It shows India's stand for a WTO-centred, consensus-based trading order.
- It protects policy space for developing countries to industrialise.
Problems
- Unilateral trade measures, such as border action on forced labour, can clash with WTO rules.
- The WTO appellate body is non-functional, so disputes lack a binding final step.
Way forward
- Use evidence-based, WTO-consistent remedies such as anti-dumping and countervailing duties.
- Revive the two-tier dispute settlement and keep labour standards work within the ILO.
Put in your answer
Article 23: The Constitution prohibits forced labour as a fundamental right, enforceable by the Supreme Court. It is useful in answers on labour standards and trade.
Foreign Trade Policy amendment: India's July 2026 amendment bars imports of goods made with forced labour. It is an example of aligning trade policy with labour norms.
- 2014Mains GS2 · Q20WTO's mandate, binding nature of decisions, and India's stand on food security.
- 2016Mains GS2 · Q17WTO aims in globalization and why Doha round faces developed-developing country differences.
- 2018Mains GS2 · Q19Key WTO reform areas amid trade war, considering India's interests.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: India's stand on excess capacity, MFN and forced labour is useful, but the item gives no decision or numbers for a question.
Worth revising until Prelims 2028: most news questions come within two years of the event.