World Trade Organization Faces Criticism and Calls for Reform

What's Happening?

The World Trade Organization (WTO) is an intergovernmental organization that governs global trade, with 164 member countries accounting for 96.4% of world trade. Established in 1995, the WTO succeeded the General Agreement on Tariffs and Trade (GATT) of 1947. While the WTO is praised for lowering trade barriers and mediating disputes, it faces criticism for widening the global wealth gap and undermining democracy. President Trump criticized the WTO for unfair rulings against the U.S. and threatened withdrawal, while President Biden seeks reform, focusing on dispute resolution and addressing China's trade practices.

Why It's Important?

The WTO's role in global trade is pivotal, impacting economies worldwide. Criticism of the organization highlights challenges in balancing free trade with national interests and addressing unfair practices. The U.S.'s stance on WTO reform reflects broader concerns about the organization's effectiveness and its ability to adapt to modern trade issues. Reform efforts could lead to significant changes in how global trade is conducted, affecting businesses, economies, and international relations.