WHAT ARE THE THREATS TO THE FUTURE OF THE WTO?

Abstract

Today we are witnessing a serious crisis that could lead to the collapse of the World Trade Organization (WTO). This crisis is the consequence of the uncooperative behavior of the triad: the United States, the European Union and East Asia. When there is a confrontation between these three most powerful regional blocs, there is inevitably a blockage and a destructive trade war similar to that of the 1930s. In these times of crisis, each country tries to save its economy by relying on the strategy of protectionism. The negotiation and regulatory functions of the WTO are paralyzed: the Dispute Settlement Body is seriously affected by the refusal of the United States, since 2016, to renew the members of the Appellate Body (AB) whose mandates were expiring. This jeopardizes international rules negotiated since 1947, when the General Agreement on Tariffs and Trade (GATT) was created. The existence of liberalization fatigue and a growing rejection of globalization raises questions about the future of the WTO.