In the aftermath of the Second World War, there was a broad realisation that mutual cooperation and peaceful coexistence were essential to meet the needs of individual countries while avoiding global conflict. It was in this context that the United Nations was established as a common platform for dialogue and the resolution of international disputes. Despite the disproportionate powers granted to the five permanent members of the UN Security Council—the United States, the Soviet Union (now Russia), France, the United Kingdom, and China—the UN has played a significant role in promoting peace and disarmament, highlighting the dangers of nuclear weapons, mobilising resources for children’s welfare and public health, and responding to both man-made and natural crises. It also contributed to establishing rules governing international trade.

The United Nations Conference on Trade and Development (UNCTAD), created in 1964, was mandated to help developing countries benefit from global trade, investment, and economic growth, and to integrate them into the world economy on equitable terms. UNCTAD serves as a focal point for trade and development by providing policy analysis, facilitating consensus-building, and offering technical assistance, particularly to Least Developed Countries (LDCs).

Similarly, the General Agreement on Tariffs and Trade (GATT), a 1947 multilateral treaty, sought to accelerate post-war economic recovery by liberalising international trade through the reduction of tariffs, quotas, and subsidies. In 1995, GATT was replaced by the World Trade Organization (WTO). Although the WTO has been widely criticised for its bias in favour of developed countries, several provisions within agreements such as Trade-Related Aspects of Intellectual Property Rights (TRIPS) and Trade-Related Investment Measures (TRIMS) can be utilised by developing nations to their advantage. Importantly, these frameworks at least provided a rules-based system for international trade.

Under the slogan “Make America Great Again” (MAGA), Donald Trump began unilaterally rewriting trade rules, ignoring both the WTO and the United Nations. The United States withdrew from 66 international organizations, conventions, and treaties, including the Paris Climate Agreement. As Canadian Prime Minister Mark Carney remarked in his address at the WEF, the international order has been “ruptured.” He called upon middle-income countries to unite—an implicit critique of, and resistance to, Trump’s policies.

Trump sought to impose his tariff agenda by negotiating separately with individual countries, undermining multilateralism. His intentions became increasingly evident when he spoke about control over the Panama Canal and the Gulf of Mexico, and even the takeover of Greenland. He made no attempt to conceal his interest in global oil resources in West Asia and other parts of the world. The kidnapping of Venezuela’s duly elected President Nicolás Maduro and his wife represented a direct challenge to national sovereignty worldwide. In the process, Trump also undermined traditional U.S. allies in Europe.

Many European countries had earlier supported U.S. military interventions in Iraq and Libya, backed rebel forces in Syria, and endorsed U.S.-led regime-change efforts in Iran. With only muted objections, they also stood by Israel during the genocide in Gaza. Previously, they had aligned with the U.S. in response to the manufactured threat from the former USSR. However, these countries began to feel the impact of U.S. unilateralism when Trump announced plans to take over Greenland—by force or purchase. Consequently, European Union countries, some of which were once colonial powers, started exploring alternative strategies to confront the American challenge. This development is a welcome step towards strengthening multipolarity in the global order.

It is in this context that the long-pending Indo–EU trade agreement—under negotiation since 2007—was concluded on 27 January 2026. The agreement has to be watched with caution as the EU's expansive demands—encompassing intellectual property, government procurement, agriculture, and regulatory standards—seek to permanently constrain India's policy space for development, industrial growth, and public welfare, amounting to an unacceptable infringement on India’s economic sovereignty, strategic autonomy, and the welfare of the citizens. Concurrently, tariff elimination would flood the market with manufactured goods, leading to de-industrialization, massive job losses, and the destruction of Micro, Small and Medium Enterprises (MSMEs). Furthermore, the EU’s proposed intellectual property regime would cripple India's generic medicine sector, making essential drugs unaffordable and betraying global public health.

Global geopolitics is undergoing rapid change, and new trends are emerging. At this critical juncture, it is essential for developing and least developed countries of the Global South to evolve their own systems of mutual cooperation, peaceful coexistence, respect for sovereignty, end to the arms race and economic development based on mutual benefits. In recent years, many developing countries have increasingly turned towards China for support. South Africa’s initiative against Israeli Prime Minister Netanyahu at the International Criminal Court (ICC) and International Court of Justice (ICJ) represents a positive development. The emergence of platforms such as BRICS and the Shanghai Cooperation Organisation (SCO) is also encouraging.

However, it is crucial to ensure that the interests of the poorest countries in the Global South are not sidelined. In many developing nations, including India, economic growth has disproportionately benefited elite sections of society. Therefore, organisations such as the Non-Aligned Movement (NAM) must be revitalised, and regional cooperation forums like SAARC should be reactivated and made genuinely effective. Economic policies to be pursued should be based on equity and justice. (IPA Service)