WTO at 30 reaffirms global free trade and multilateralism
WTO at 30 reaffirms global free trade and multilateralism
The 30th anniversary of the World Trade Organization (WTO) arrives at a precarious moment for the global economy. The principles on which the WTO was founded – free trade and multilateralism – are under siege.
Rising protectionism, unilateral trade actions, and the erosion of trust in international institutions have all cast doubt on the future of the system, which has underpinned decades of growth.
In this challenging moment, the international community must come together to reaffirm its commitment to the ideals of open and inclusive trade. This is not just a matter of economic policy; it is about preserving the stability and peace that free trade has helped foster.
Over the past 30 years, the WTO has transformed global trade. By lowering tariffs, clarifying rules, and resolving disputes, it has spurred unprecedented economic growth.
Developing economies, in particular, have seen their share of global trade increase from 25 percent in 1995 to 44 percent in 2023, according to UN data, enabling them to industrialize and modernize.
China’s own journey is a testament to the power of free trade. Since joining the WTO in 2001, China has rapidly integrated into the global economy, becoming a main trade partner for more than 140 countries and regions.
This integration has not only driven China’s development but also created immense opportunities for its trading partners, highlighting the mutually beneficial nature of globalization and free trade.
However, cracks in this multilateral trading system are evident. The Appellate Body, the cornerstone of the WTO’s dispute resolution mechanism, has been paralyzed since 2019 because Washington blocked the selection of judges of the body.
In a recent article, Anne Osborn Krueger, former World Bank chief economist, cautioned that if the global trading system continues on its current path, economic growth will lag behind its potential. “The world would be poorer, more divided, and far more vulnerable to looming existential threats.”
Critics of the WTO and globalization may argue that free trade has fueled inequality and job losses.
