The Role of World Trade Organization in Dispute Settlement

THE ROLE OF WHO IN DISPUTE SETTLEMENT
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Introduction
Who is WTO?
WTO is the abbreviation for World Trade Organization, and it is the only international organization that deals with all the rules and regulations of trade between nations. At its core are two agreements which are negotiated as well as signed by the massive of the nation’s trading worldwide and are ratified in their respective governments (Baldwin 2006). Generally, the aim is to facilitate a smooth flow of trade and make it as predictable and freely as possible. WTO plays several roles as it acts as a platform for settling trade disputes, negotiating trade agreements between all of its members and it at the same time supports and assists the needs of the developing countries.
In more than two decades, the organization has assisted in reducing trade barriers to help nations trade in services and goods. Besides, the also created a conflict resolution system which the supporters claim to have reduced the threat that affects trade wars. However, this institution has been facing some considerable amount of pressure (Baldwin 2014). For instance, the members have resolved to turn to regional as well as bilateral free trade contracts to advance their trade needs and interests. Also, negotiations conducted on comprehensive trade development goals have raised some disagreements over the rights of intellectual property as well as agricultural subsidies (Baldwin 2005). Also, the U.S president has significantly criticized the WTO for what he perceives as its failure in dealing with China’s trade constraints and abuses on the United States sovereignty, and as a result, they put the future global trade rules in huge doubts. This paper aims at looking at the significance of the role of WTO in dealing with trade disputes and also if it has been put into doubt.
The Role of WTO
This organization has the responsibility of overseeing all the rules applicable to international trade. It facilitates and creates a conducive environment for trade negotiations among its 164 members (Baldwin 2016). The number of member nations has increased from 123 to 164 in 2018. Besides, the organization must monitor the expedition of those trade agreements, produce research on global trade as well as economic policy and it also acts as a platform for confronting and settling trade conflicts between nations.
The organization was established in 1995, and it is based in Geneva Switzerland. It succeeded the General Agreement on Tariffs and Trade (GATT) which was an organization that was founded in 1948 and its rules made up the contemporary trading system. The decision-making process of WTO takes place at the Ministerial Conference which is usually held after two years (Busch 2003). Since the inaugural conference, there have been eleven conferences. Most of these conferences are made by consensus apart from few exceptions, meaning that all the decisions are binding and all the members must agree. Normally, the WTO rules are implemented by the member nations, and they also have the power to impose retaliatory trade sanctions on all the nations that contradict them.
Several founding principles guide WTO. One of the principles is a commitment to remain transparent. This is the most basic of the founding principles. Besides, they have a duty of reducing tariffs, limiting import bans, limiting quotas, barriers of trade as well as distorting subsidiaries (Esty 1998). Consequently, they strive to observe non-discrimination, meaning that all WTO members are expected to teat trade from the other members equally. WTO pursues openness and predictability in all regulations related to trade and at the same time enhanced international standards to give companies, citizens as well as investors the stability that they require. The organization is also devoted in principle offer the developing countries, some more flexibility as well as accommodations to assist them to adjust to the new regulations.
WTO And How It Deals With Conflicts
The trading strategies of WTO have been used extensively over the years to assist in mitigating unilateral feedback to conflicts as well as trade wars. More than five hundred trade disputes have been filed with WTO since 1995 (Guzman 2005). Most of these trade conflicts are usually handled or settled by agreement or consultations before they advance to litigation. At the joining stage, the members consent to a dispute settlement strategy and trade experts who are appointed by WTO can render the binding decisions. Therefore, when a member files a complaint against another, it is expected that the first attempt to settle the dispute through consultation and a panel can only be chosen if consultation fails (Hufbauer 2013). The Dispute Settlement Body chooses this panel, and it is responsible for hearing the case. The recommendations made by the panel should be implemented by the offending country that is if the recommendations are not overturned to appeal. In the event, the offending country fails to heed; the plaintiff can undertake the targeted retaliatory measures such as raising tariffs or blocking imports.
One of the most active participants in this system is the United States. They have filed 116 complaints and have managed to serve as a defendant in about 136 cases. One of U.S’s policy maker’s particular targets is China. They have recently used these WTO process to challenge the support of the Chinese government on abuse of intellectual property, their support for domestic industries, the restrictions they have in imports and other state-led policies (Jackson 1997). During Obama’s tenure, his administration presented 25 cases to WTO which were more than any other country had done. Out of the twenty-five, 16 were targeting China. Fortunately, the administration won seven cases which included aircraft subsidies and limits on Chinese agriculture as well as limits on steel import duties. The other cases are continuing.
In Donald Trump’s tenure, he has denounced their practices and has accused WTO of its inability to deal with this problem. Trump has entirely avoided the WTO system and has gone ahead of applying traffics that focus on overproduction of aluminum and steel by China and others by use of the minimally used national security legislation (McBride 2018). Besides, the administration more measures to retaliate on the investment restrictions imposed by China. Edward Alden has termed the willingness of Trump to bypass the procedures of WTO as the end of the organization.
Another system that is facing much pressure is the appeal system. It started facing criticism during Obama’s reign. His administration formed criticism from some members after a decision made in May 2016 to block the South Korean judge to be reappointed to the WTO’s Body which was the first time that a country attempted to block the appointment of a judge coming from a different country (Jackson 1997). Trump continues to block any new appointments thus creating some vacancy of judgeship out of the seven and making much of court’s work difficult.
Criticisms Facing WTO
WTO has been facing much criticism emanating fro...