The WTO is dead, long live WTO!
The World Trade Organization (WTO), established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT), was envisioned as the guardian of free and fair global trade. It was founded to ensure that trade flows as smoothly, predictably, and freely as possible, reducing trade barriers and providing a platform for negotiations. However, as it approaches its 30th anniversary in 2025, the question looms large: Is the WTO on its deathbed? The WTO’s credibility has steadily diminished over the past decade. Once hailed as the bedrock of the global trading system, it now finds itself at the mercy of rising economic nationalism, trade wars, and institutional paralysis.
The organization’s dispute settlement mechanism – its crown jewel – has been rendered dysfunctional since 2019 due to the U.S. blocking judicial appointments to its Appellate Body. Without a functioning dispute resolution system, the WTO’s ability to enforce trade rules has weakened considerably, making it nearly impossible to resolve international trade disputes effectively. The Dispute Settlement Body (DSB), once seen as an efficient and fair arbitrator, is now handicapped by political maneuvering and the unwillingness of major economies to abide by its decisions. The WTO was established to prevent trade conflicts and ensure a level playing field, but it has been powerless in the face of the U.S.-China trade war. The two countries, instead of using the WTO framework, have resorted to........
© The Statesman
