WTO and New World Order: Diplomat

With more than 160 members, the World Trade Organization describes itself as the only global organization dealing with the rules of trade among nations. “The outsourcing revolution has affected the developing world in a major way: global manufacturing and new services have dramatically changed supply chains; corporate espionage and intellectual property infringements supported many corporate changes in developing countries; and WTO negotiations and augmented enforcement procedures have not been able to slow that trend,” explain Valbona Zeneli and Michael R. Czinkota for the Diplomat. They summarize concerns for the trade body. Trade imbalances are rising. The WTO has failed in creating new agreements to address old concerns and new trends. The body may be too large for unanimous consensus on decisions. The WTO has struggled to manage disputes over China’s subsidies and state-run enterprises, and the pace of reform is slow. Regardless, China’s influence has grown. Organizations like the WTO must accommodate the country as rule-shaker and rule-maker rather than rule-taker. – YaleGlobal