The World Trade Organization (WTO) is set to commence its biennial meeting on Monday in the United Arab Emirates, amidst growing pressures from various nations, including the United States, ahead of a year marked by consequential elections worldwide..
Representing 164 member nations, the WTO’s agenda includes discussions on crucial topics such as a potential deal to ban subsidies contributing to overfishing, the extension of a moratorium on taxes imposed on digital media like movies and video games, and issues related to agriculture.
However, the organization faces significant headwinds, particularly amid the ongoing uneven recovery from the COVID-19 pandemic across different nations. Additionally, the year is marked by over 50 elections globally, impacting half of the planet’s population. Among these, the U.S. presidential election on Nov. 5 holds particular significance for the WTO.
Former President Donald Trump, seeking re-election, had previously threatened to withdraw the U.S. from the WTO and implemented tariffs on imports from both allies and adversaries alike, potentially disrupting global trade flows. The outcome of the U.S. election could have far-reaching implications for international trade dynamics.
WTO Director-General Ngozi Okonjo-Iweala, a citizen of both Nigeria and the United States, has emphasized the importance of ensuring the organization’s continued relevance, highlighting that 75% of global trade operates under its framework. She stressed the necessity of implementing appropriate reforms regardless of political changes, underscoring the potential consequences of the WTO losing relevance.
However, even in the event of President Joe Biden’s re-election, the United States maintains deep reservations regarding the WTO. Concerns include the blocking of appointments to the WTO’s appeals court over successive administrations, resulting in its current non-operation. The U.S. has criticized China’s designation as a developing country since joining the WTO in 2001, alleging unfair trade practices and barriers to market access.
Furthermore, the voting format of the WTO poses challenges, as major decisions require consensus among member nations. This necessitates active support from countries for proposed measures to be enacted.
As the WTO convenes amidst these challenges, stakeholders will grapple with pressing issues to navigate the evolving landscape of global trade policies and ensure the organization’s effectiveness in promoting international commerce.
