Challenging the WTO: The Growing Importance of Reforming International Trade Institutions

Two years ago, the World Trade Organization (WTO) had resolved to revitalize its dispute-resolution mechanism. However, despite their efforts, the WTO has once again been blocked from filling vacancies on the panel responsible for resolving disputes among its members. This marks the 75th time in a row that such a motion has been blocked, leaving transgressions unpunished and rendering the WTO powerless for nearly five years.

This ongoing dysfunction at the WTO reflects broader challenges facing international trade and investment institutions. The European Union is currently considering imposing tariffs on Chinese electric vehicles and conducting raids on Chinese companies for subsidies. Meanwhile, the United States has recently imposed sanctions on hundreds of entities, including those in China and Turkey, for supporting Russia’s military. These developments illustrate a growing trend of countries resorting to protectionist measures and disregarding international trade regulations.

The lack of cooperation and adherence to established rules threatens the stability and fairness of global trade. It highlights the urgent need for reform and revitalization of international trade institutions. The current state of affairs at the WTO is indicative of a global trend where institutions and rules meant to promote global trade are increasingly becoming irrelevant.