Why is it in the news?
The US administration is aggressively pursuing Agreements on Reciprocal Trade (ARTs) with developing nations and an interim framework with India.
These agreements mark a shift from WTO-based multilateralism to power-based bilateral negotiations.
Category: International Relations
Important Points:
● ARTs are US-led bilateral trade arrangements operating outside WTO framework
● Not established under GATT Article XXIV
● Bypass MFN principle and WTO dispute settlement mechanisms
● Negotiated under threat of punitive tariffs
● Include “WTO-plus” provisions restricting digital taxes
● Mandate free cross-border data flows, limiting data localisation
● Include geopolitical “poison pill” clauses deterring ties with non-market economies
● Weaken collective bargaining power of developing countries
● WTO Appellate Body non-functional since December 2019
● India strengthening FTAs and advocating WTO reforms