Problems and challenges faced by WTO

An agreement was reached in the 1^st January 1995, to establish Word Trade Organization.  It was the same with its predecessor GATT, which had ruled the globe trade from 1940s. The tasks it performs are similar to those of GATT. Pressures from the outside have been a challenge to the organization’s long-run viability. The issue of overload is a challenge. Overload means excessive burden directed to WTO. It has been complicated for WTO to handle daily affairs arising within the organization (Arrowsmith, 2011).

Also, it is hard for the organization to partake episodic rounds of bilateral negotiations. More nations are concerned in the negotiations under this organization at present than under GATT. The more the nations are, the more the burden for WTO to handle. For instance, when GATT was initiated in 1948, only 23 member states signed.  But after the WTO started, 144 members signed by 2002. Conducting negotiations with all these nations is a large burden. Subsequently, the discussion staged in Tokyo and Uruguay’s rounds augmented the complexity and scope of trading. The results helped in dealing with import taxes by reducing a broadened diversity of governmental procedures that distort trade amongst nations.

The rising countries are dissatisfied with the contemporary system of WTO. These countries perceive it as extremely tough to handle the augmented and complex workload, which resulted from extension of rules to fresh economic areas. The nations that are developing have been questioning and comparing the benefits resulting from the new policy of WTO against the social and economic costs concerned in executing the fresh policies. Consequently, the developing states tend to think that they would benefit more from the agreements on apparel, agriculture and textiles than the developed countries (Gallagher, 2005). If an enormous number of developing states concludes that WTO is unprofitable, the repercussions would destroy the move by WTO to attain its fundamental goals.

Another challenge facing WTO is its new rules on social and domestic economy. The new set measures and rules significantly influence social and economic issues. The traditional ways of life and local economies are affected. There has been a feeling that the traditional ways of life, preserving the sovereignty of nations are ignored. This resulted from the fact the groups were not included in negotiations; therefore, they did not realize fully the consequences of these rules (Schott, 2000).

Legislation via the system of fresh dispute settlement is another challenge. The extension of WTO new rules brought about more disputes. This concurs to the expectations of members of WTO (Bossche, 2005). There are alterations on the manner of dispute handling. The process encourages settlement of dispute under legislation rather than the initial approach of a bargained dispute settlement.

WTO also faces challenges from emerging issues like the environment, competition, trade-related investments and labor-rights issues, which differ among its member countries. Several countries have proposed yearly that the authority of rule making in WTO should be expanded annually to incorporate these emerging issues (Lovric, 2010).

Ministers in the Doha round were able to discuss measure of addressing the challenges. Their focus was based on the developing states. All the negotiated issues were based on decisions taken through precise consensus. The agenda was meant for implementation.  The ministers in the Doha round accomplished negotiations sector of agriculture. They also accomplished the agreements, which all member states would sign.

It is apparent that WTO is faced by external and internal challenges, which threaten its viability. Through the utilization of current WTO rules, these challenges could be met. The declaration made by Doha round’s ministers explain how an agreement can be reached on a program for making important changes. The WTO needs several fixing devoid to abandon the current basic composition of the institution.

 

References

Arrowsmith, S. & Anderson, R. (2011). The WTO Regime on Government Procurement:

Bossche, P. (2005). The Law and Policy of the World Trade Organization: Text, Cases and Materials. Cambridge: Cambridge University Press.

Gallagher, P., Low, P. & Stoler, A. (2005). Managing the Challenges of WTO Participation. Cambridge: Cambridge University Press.

Lovric, D. (2010). Deference to the Legislature in WTO: Challenges to Legislation. Alphen aan den Rijn: Kluwer Law International.

Schott, J.J. (2000). The WTO: After Seattle. London: Peterson Institute.

 

 

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