The WTO and its Four Organizational Challenges

The WTO was established in 1995 to deepen freer trade among its members. However since its formation, the WTO has been criticized for obsessively pursuing a free trade agenda at the expense of non economic values such as environmental conservation, sovereignty and the development in poor countries. In this paper, I argue that the WTO faces four organizational challenges. First,because it is having a profound impact on many non State interest groups, it must be a forum where all interest groups that are affected by its policies can participate in the formulation of its policies. This is the democracy and participation challenge. It can resolve this challenge by improving the participation of NGOs and Parliamentarians of member States in its affairs. For the WTO to succeed in meeting its objectives it also has to have an efficient and effective organizational structure. This is the management challenge. A reformed WTO, with an executive board and a strong office of the Director‐General will meet the management challenge and help the WTO to achieve its objectives. Critics of the WTO claim that its rulemaking procedures which depend on consensus and super‐majorities are cumbersome. They argue that it does not allow the WTO to respond quickly to changes in the international trade environment. This is the rulemaking challenge. I argue that these “cumbersome” procedures are meant to protect sovereignty, which is a central concept in international relations. I argue that WTO rule‐making must continue to protect sovereignty. However, where a critical mass of countries wishes to introduce a new rule they should be able to do so. However, it should not bind countries who disagree with the introduction of the rule. The WTO also faces a dispute settlement challenge. Not all the problems that come before the WTO DSB can be resolved by litigation. Also the remedies available under present WTO rules are inadequate and in certain situations they do not provide sufficient relief to countries whose rights have been breached. The WTO therefore has to develop other dispute settlement mechanisms like mediation to resolve disputes and they must provide other reliefs such as greater trade concessions or money payments to countries whose rights have been breach instead of the withdrawal of concessions which further damages the international trading system.