WTO's Decline and Challenges
The WTO is increasingly seen as irrelevant, failing to perform its core functions of negotiation, dispute settlement, and trade monitoring.
Since 2001, the WTO has struggled to negotiate major trade agreements, and its dispute settlement mechanism is blocked due to U.S. objections, making it inefficient in addressing global trade issues.
Decision-making by consensus is proving difficult, with countries like the U.S. blocking reforms and negotiations.
U.S. Actions and Global Impact
The introduction of reciprocal tariffs by the U.S. is seen as a move away from the WTO system and has created uncertainty in global trade.
These tariffs raise concerns about a global economic decline and complicate international trade relations.
The U.S. has increasingly moved away from the Most-Favoured-Nation principle, leading to bilateral negotiations rather than multilateral agreements under the WTO.
India’s Role and Agricultural Issues
India’s resistance to agricultural subsidies and certain WTO agreements is rooted in concerns over food security and the WTO’s unfair treatment of developing countries.
India prefers negotiating sensitive issues like labor standards and environmental protection on a bilateral level rather than within the WTO framework.
China’s Role in WTO Criticism
Critics, especially from the U.S., argue that China’s entry into the WTO led to an influx of cheap exports, while China restricted access to its own markets, which undermined global trade fairness.
The WTO's rules were not designed to address the challenges posed by China, such as excessive production capacity, which distorted global trade, especially in steel and cement markets.
Conclusion
The WTO’s failure to adapt to the evolving global economy and its inability to address trade imbalances, especially with China, has led to diminished relevance in global trade negotiations.
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