Major threat to WTO

The World Trade Organization has a Dispute Settlement Body which deals with disagreements between member countries.[1] In their report, Challenges facing the WTO and Policies to address global governance, Peter Sutherland and John Sewell argue that the dispute settlement body has one weakness which is; it formulates resolutions that favor certain member countries to others.[2] These members believe that they are not given the required technical support availed to other member countries in dealing with WTO commitments. This results to open hostility from the governments as some of their interests are not taken into account, resulting in the decrease of confidence in the way they handle their internal feuds. Without proper understanding and co-operation between member countries and the organization itself, the strong framework and success is bound to change into failure and downfall of the World Trade Organization.

Richard Baldwin in his article: thinking ahead on global Trade says that radical change the world economy is going through is “due to the rise of the supply chain trade”[3] and continues to argue that the World Trade Organization has not adjusted to the change and still governing under old rules.[4] This will lead to the erosion of the World Trade Organization governance if they do not establish new rules that will accommodate the change.

Members of the World Trade Organization are also posing a threat to the relevancy of the organization. Subramanian Arvin in his article China and America Should Strike a Grand Bargain suggests that “if the China’s President is to meet the president of the US in the next few years, the World Trade Organization (WTO) and the International Monetary Fund (IMF) could all be in positions of irrelevance. This would be a disaster for the rest of the world economies”[5]. Subramanian sees a situation where, “Washington would have to give up power on these institutions in return for China taking on greater global leadership to preserve the system’s real purpose – free and fair globalization”[6]

Most of the threats that the WTO face are debatable but it will have to make a big step to control and come up with the solutions to the challenges they are facing. Baldwin suggests that a new World Trade Organization “WTO 2.0”[7] should be established to deal with the issues at hand to ensure that their main objective, governance of global trade, is achieved.

Bibliography

Baldwin, Richard. Thinking ahead on global trade governance. December 22, 2012.

Subramnian, Arvind. China and America Should Strike a Grand Bargain. June 6,

  1. http://www.iie.com/publications/opeds/oped.cfm?ReesearchId=2416 (accessed April 27, 2015).

Sutherland, Peter, and John Sewell. “Challenges facing the WTO and policies to address

global governance.” Field Study, 2000.

WTO. Dispute Settlement: WTO. 2015. http://www.wto.orgt/english/tratop_e/dispu_e.htm (accessed

April 27, 2015).

[1]WTO. Dispute Settlement: WTO. 2015. http://www.wto.orgt/english/tratop_e/dispu_e.htm (accessed April 27, 2015).

[2] Sutherland, Peter, and John Sewell. “Challenges facing the WTO and policies to address global governance.” Field Study, 2000.

[3]Baldwin, Richard. Thinking ahead on global trade governance. December 22, 2012.

[4] Ibid 3

[5] Subramnian, Arvind. China and America Should Strike a Grand Bargain. June 6, 2013. http://www.iie.com/publications/opeds/oped.cfm?ReesearchId=2416 (accessed April 27, 2015).

[6] Ibid 5

[7] Ibid 3

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