The Economist: How to Rescue the WTO

The World Trade Organization, long dependent on US trade policy, now struggles to intervene in the current trade war with China. The WTO is forced to remain a bystander as the United States blocks nominations to seats to the dispute settlement board even as the number of trade disputes rise. Another ongoing challenge is China’s distortion of trade through mercantilism, state-owned firms and government subsidies. The United States, the European Union and Japan discuss reforms including the redefinition of the scale of government interference in trade. China is likely to comply due to its dependence on the stable relationships formed by its entrance into the WTO in 2001, reports the Economist. A complete global agreement could also be bypassed by a “plurilateral” agreement among the major players, and any opposition from the United States could be appeased by reform that addresses “unfair competition.” – Yale Global