Natural Resource Underpricing in WTO Subsidies Rules and Beyond: A Reflection of North-South Divide in Globalization

This paper delves into the complex issue of natural resource underpricing within the framework of World Trade Organisation (WTO) subsidy rules, highlighting its role in perpetuating the North-South divide in the context of globalisation. By tracing the historical context and evolution of these subsidy rules from the General Agreement on Tariffs and Trade (GATT) to the current WTO framework, the study underscores the significant economic impact on developing countries. It includes detailed case studies, such as the People's Education and Development Organisation (PEDO) project in Rajasthan and sustainable forestry management in Brazil, to illustrate the challenges and successes in natural resource management. Furthermore, the paper assesses the broader economic implications of WTO regulations on the Global South, emphasising the need for effective implementation of Special and Differential Treatment (SDT) provisions and enhanced technical assistance. Finally, the research proposes critical reforms aimed at creating a more equitable trade framework that supports sustainable development, poverty reduction, and global economic equity. These findings contribute to the ongoing discourse on fair trade practices and the equitable integration of developing countries into the global trading system.