3 Top Risks Of the Global Trade War Solution
big
March 23, 2019
0 Comments
The solution was supposed to be the World Trade Org. Has it managed to negotiate trade dispute solutions for waring nations?
No? Members of
the World Trade Organization (WTO) have become increasingly frustrated with all
three of its main functions: monitoring member states’ trade policies,
providing a forum to negotiate new trade agreements, and arbitrating trade
disputes.
Why? What are
the issues? First, two-thirds of the
WTO’s 164 member states continue to claim “developing country” status, a designation that
allows them to take advantage of certain benefits and exemptions to obligations
not granted to advanced economies. However, economic realities suggest that
many of these countries have the capacity to take on fuller obligations. For
example, 10 Group of Twenty (G20) members claim developing country status at
the WTO. Since the WTO allows for self-classification, there is no universal
definition for developed or developing status.
Second, the WTO’s negotiating arm is atrophying. At
the root of the degrading negotiating function is the difficulty for WTO
members to reach a full consensus, which is required to agree to new
agreements, obligations, and rule changes. The failure of many countries,
including major economies like China, to comply with notification and
transparency obligations has made negotiating new rules and agreements even
more difficult.
The United States, the European Union, and others have called
for rules that would punish members for not complying with their transparency
obligations. The consensus requirement, however, will likely present a
formidable roadblock to such rules being agreed to. Certain members, including
China, have taken advantage of the overall impasse at the WTO and continue to
maintain discriminatory barriers against imports, intervene in markets to
support state-owned enterprises, and fail to report subsidies to the WTO
accurately.
Third, some countries (but primarily the United
States) have concerns with the WTO dispute settlement system, the main process
to resolve trade conflicts between members. Specifically, the United States
is concerned the Appellate Body, which permits countries to appeal
against adverse rulings, has exercised decision making and arbitration power
beyond its original mandate.
Successive U.S. administrations have claimed that
the Appellate Body, through its rulings, adds or diminishes to the rights of
WTO members by reinterpreting WTO agreements, despite WTO members having never
agreed to those interpretations. While desire for reform is broadly shared
across the WTO community, member states’ opinions and proposals on how to
proceed vary significantly.
There can be no agreement between the nations, so this
org. might dissolve naturally. Or could a country take the lead and come up with something reasonable, fair and
lucrative for all? Why not take a look at other political topics? CLICK HERE
Judges do get threats - click on image. That's the only reason the Supreme Court, so far, is referring cases back to States, right?
Click image to get list of hi-tech to Boycot