Question

What are the primary principles on which the World Trade Organization (WTO) operates? Why are these principles important for achieving more open trade among member countries? What are the major challenges facing the WTO currently?

Answer 1

The WTO offers a forum for negotiating agreements designed to eliminate barriers to international trade and maintain a level playing field for all, thereby contributing to economic growth and development. The WTO also provides a legal and administrative structure for the execution and supervision of these agreements, and for the resolution of conflicts arising from their interpretation and execution. The official WTO trading body consists of 16 different multilateral agreements (to which all WTO members are parties) and two separate plurilateral agreements (to which only certain WTO members are parties).

The founding and guiding principles of the WTO continue to be the promotion of open borders, the assurance of the concept of the most favored nation and non-discriminatory treatment by and within members, and a pledge to openness in the conduct of its activities. The opening up of national markets to international trade, with justifiable exceptions or with sufficient flexibility, would encourage and contribute to sustainable growth, increase the welfare of the people, reduce poverty, and promote peace and stability. At the same time, such opening of the market must be accompanied by sound domestic and international policies which lead to economic growth and development according to the needs and aspirations of each member.

The World Trade Organization faces the greatest challenge of its 23 years of existence. President Donald Trump does not believe that the WTO will deal with the problems created by China's rapid economic growth and is questioning the laws that regulate international trade fundamentally. "COM is unacceptable to the U.S. In an attempt to redraw trade ties, the U.S. has targeted both allies and rivals and Trump has levied levies on Chinese products worth US$ 150 billion in an escalating tit-for-tat with Beijing. China has warned American imports of 50 billion US dollars in its own tariffs.

The WTO is faced with an influx of disputes from countries which use national security as a tariff excuse. This exploits a loophole in WTO law that allows its 164 members to take any action they find necessary to protect critical security interests The WTO has not always functioned as planned, "Instead of serving as a negotiating platform where countries can establish new and improved rules, it has often been controlled by a dispute resolution mechanism where activist 'judges' attempt to enforce their own poicy