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Do we need WTO or not ?

WTO is an international organization to handle world trade. Currently, there is a stall in the world trade due to the US-China war and move specifically of the withdrawal of developing nations tag from India and China by the USA. This is due to

The USA alleges

  • India and China
  1. Misusing developing nation tag
  2. Themselves opaque about subsidy, government enterprise etc.

Resulting in

  1. Going against A.23 of Dispute Settlement Understanding of WTO (prohibition of the unilateral embargo)
  • Relegating WTO’s position.
  1. Disrupting world order might give to rise to jungle rain in world trade order.

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In order to evaluate the situation, one must analyze WTO’s utilities. They are:-


  • Emerges helped in trade growth – stability – improving world economy after World War II.
  • Caused Massive Structural Change.

E.g.: 1995 – 0.8% Internet Users

2019 – 57% Internet Users

  1. Promoted International Trade

E.g.: Single iPhone – 14 components

  • 7/8 Multinational Company
  • 40 countries
  1. Lowered Import tariff by 15%
  2. Implemented Free Trade Agreements.
  3. Functioned – Forum for dispute settlement

E.g.: Avoided Trade war worth $340 billion.

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Yet sure is some short timing in WTO’s functioning. They are:

  • The multilateral process not fortified
  • Negotiation
  • 164 members
  • Complex
  • Rise of Regionalism
  • Suffers from Evolutionary bias

Yes, I think WTO shall average as a lynchpin of global trade governance. The following steps shall assist this emergence.

  • The assistance of the USA – through a reasonable later.
  • Reasonable Multilateralism – Open discussion – hearing all members.
  • Alternative entering into plurilateral agreements.
  • Big players should share the burden rather than being altruistic.

The world order is a must for global peace and to tackle an omniscient recession crisis. Rise of WTO shall be an important defence in such a crisis


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