Instead of completely marginalizing the WTO, it will be advantageous if all member nations debate the issues and reach an agreement.
The General Agreement on Tariffs and Trade (GATT) was replaced by the WTO when it was established in 1995. 164 nations are members of it.
It was founded to promote solving trade conflicts amicably and logically.
Is the World Trade Organization (WTO) losing its sway in the wake of the US-China trade war, Trump’s threats to quit the WTO, and the growing prominence of regional trade blocs? In the current global era, is it still relevant?
Is it struggling to stay relevant?
The World Trade Organization (WTO) is enduring an existential crisis that has never before occurred. Various parties are challenging the WTO, but one of its previous supporters—the US—poses the biggest threat.
Concerning the WTO, the current US government has adopted a fairly strong stance. According to the US President, the WTO is the “single worst trade agreement ever made.” He has regularly threatened to leave the WTO and has frequently expressed his contempt for the organization in no clear terms.
The Trump administration frequently ignores WTO regulations and unilaterally imposes tariffs on other nations in the name of advancing nationalistic policies. The US trade authorities’ actions are essentially provoking a trade war.
What are the causes of the threat?
Import levies are almost universally imposed by large WTO participants to safeguard domestic producers. This is against the WTO regulation that domestic and foreign players must be treated equally.
The World Trade Organization is being undermined by the US-China trade conflict. It is against the country’s policies to impose limits on it.
The WTO is charged with the duty of promoting inclusive growth. The least developed nations should be granted preferential treatment in trade following its regulations. However, it is frequently charged for adopting Pro-Rich policies. Many undeveloped and developing nations are not pleased with the WTO.
The significance of the WTO is diminishing as more bilateral and multilateral trade agreements are signed.