India is set to oppose a United States proposal at the World Trade Organization (WTO) that seeks to dismantle the most-favoured-nation (MFN) obligation. The US argues that the MFN principle, which ensures non-discriminatory tariff regimes, is unsuitable for the current era of economic divergence. Washington contends that the principle prevents countries from optimizing trade relationships and should be replaced with a system allowing members to treat different partners differently.
Indian officials view this proposal as an attempt by the US to “multilateralise” the reciprocal tariffs it has already imposed on various countries. New Delhi maintains that the foundational principles of the Marrakesh Agreement, including consensus-based decision-making and special treatment for developing nations, should not be open for negotiation. India has established a group of experts to sharpen its reform narrative and identify strategic “red lines” ahead of the WTO’s 14th ministerial meeting in 2026.
The US also continues to push for reforms in special and differential treatment (SDT) eligibility, specifically targeting significant players like India and China. Washington argues that the distinction between developed and developing status has blurred, making it “unacceptable” for large economies to benefit from preferential treatment. India, however, intends to preserve these essential fundamentals to maintain the credibility and member-driven character of the organization.