G20: India opposes making MFN treatment conditional, says Piyush Goyal

Union Minister Piyush Goyal at the G20 Trade Ministers' Meeting said India cannot support making the Most-Favoured-Nation (MFN) treatment conditional, stressing it guarantees equal terms for all traders, from the smallest to the largest.

India Opposes Conditional MFN Principle

Union Commerce and Industry Minister Piyush Goyal on Friday said India cannot support making the Most-Favoured-Nation (MFN) treatment conditional on obligations chosen by some members of the World Trade Organisation (WTO) at the G20 Trade Ministers' Meeting Session.

In a post on X, Goyal said he raised the issue during the G20 Trade Ministers' Meeting session on the MFN principle. "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. He underlined that India cannot support making MFN conditional on obligations chosen by some WTO members. "Also reiterated that as we strengthen the multilateral trading system, preserving this balance can reinforce confidence, predictability & inclusiveness," he added.

Call for WTO-Compliant Approach to Trade Distortions

Earlier today, Goyal called for a World Trade Organisation-compliant approach to tackle trade distortions and excess capacity during the concluding day of the G20 Trade Ministers’ Meeting in Milwaukee, Wisconsin. According to the Ministry of Commerce & Industry, addressing a session on structural excess capacity and production, the Minister stated that corrective measures against unfair market practices must adhere strictly to established multilateral rules rather than unilateral interventions.

Goyal said that India shares the concerns of many Members that trade-distorting support in some economies can lead to dumping and predatory pricing. He said such concerns are addressed through WTO-consistent measures, including anti-dumping and countervailing duties, based on evidence and subject to judicial review.

Clarifying India’s manufacturing standing, Goyal noted that India operates as a domestic-demand-driven economy catering to 1.4 billion people and does not possess structural excess capacity in the sectors identified by the G20 Presidency. He noted that industrial capacity in itself does not cause problems, whereas distortions emerge when geographical concentration stems from hidden subsidies.

Diversification of Supply Chains

Goyal mentioned that diversification of production and supply chains is a legitimate objective, but 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.

Strengthening the Multilateral System

Speaking on updating the Most-Favoured-Nation principle, the Minister observed that India’s commerce relies on a transparent, non-discriminatory framework. Most-Favoured-Nation treatment is a key guarantee of this system, ensuring that the same terms apply to the smallest trader and the largest trader, he said, while demanding the restoration of the two-tier dispute settlement mechanism and the preservation of special and differential treatment for developing nations.

Stance on Forced Labour

Turning to the elimination of forced labour in global supply chains, Goyal affirmed that India’s stance remains absolute under Article 23 of the Constitution. He stated that India ratified ILO Conventions 29 and 105, and amended its Foreign Trade Policy in July 2026 to bar imports made with forced labour. (ANI)

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