Future of
WTO
© Sabari Ganesh; “All Rights Reserved”
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authorsabariganesh@gmail.com
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The World Trade Organisation (WTO)
was established on January 1, 1995 with the sole prime objective of promoting
free and fair trade among nations of the world. The multilateral trade
discussions among member nations play a pivotal role in advancing towards a
better free trade regime. The success of these trade talks therefore is a
critical element of progress. Over the past twenty years, and a series of
multilateral trade talks; free trade in totality is still a dream.
The basic idea of free trade among
nations is to provide a level playing ground for companies to compete. The
objective is the betterment and enrichment of human life irrespective of any
distinction based on geography, race or sect etc. The competition is intended
to be based on competencies and merit alone. A level playing ground shall be a
reality only when it is ensured that competition is ethical and among equals.
However, the members of WTO stand segregated based on their economic health; as
developed, developing and backward nations.
The most powerful logic that blocks
WTO from achieving the free trade regime in totality is the innate need and
urge of its member nations to protect their domestic industry. The propellant
of such an idea is the negative impact of free trade on the weaker sections of
the participants. The focus and efforts of WTO has so long fallen short to
escalate and strengthen its members as equals on every possible parameter. The
intent of the member nations too is selfish to the extent of benefitting from
the free trade regime without yielding on their present protectionist measures.
The prime contention among the
developed and developing nations are on three aspects - Agriculture, Services
and Manufacturing. The sophisticated technology of the developed countries is a
threat to the developing countries that would eventually annihilate their
domestic industries. The developing nations pose a serious threat to the
employment scenario of its developed counterparts with its comparatively low
cost technically skilled manpower; which over a period of time would have a
devastating effect on the economy of the developed countries. The subsidies
granted by the governments of the developed nations challenges the level playing
field; so as the protectionist measures and customs procedures of the
developing nations.
Also, the WTO is witnessing a major
change in its composition mix since its inception. The members belonging to the
category of developing nations are on the rise; hence their voice and demand. The
dominance of the developed countries; especially that of the US and EU is
challenged at the discussion table of trade talks. The present scenario
witnessing the dwindling economies of the developed countries and the
relatively stable economies of the developing countries has enabled the WTO
operate more as an independent body than a puppet of the US and EU.
Free trade shall become a practical
reality when the competing grounds become flat and even for all the member
nations. Twenty years for an organisation with such a massive objective is
infancy. Levelling the competing grounds needs strategic intent and segmented
focus. The blurring of consensus of the trade talks may be attributed to the
vastness of the scope and spread of the focus taken up for discussions; given
the economic diversity of the member nations and their protectionist attitude.
The rise of India and China as a
prominent representative of the developing countries is a healthy sign of
balancing the WTO weigh scale. As the popular analogy dictates that water finds
its level, effectively loses its crest and trough at the same instance. The
stalemate of the multilateral trade talks is a quite anticipated incident;
thankfully has channelised the trading partners to a series of multiple
bilateral and regional Free Trade Agreements (FTA). These FTAs also come under
the legal auspices of the WTO effectively minimising the contest on the success
and relevance of WTO owing to the stalemate of trade talks.
The best option for the WTO in the
present scenario could be to ensure focused and encapsulated discussions at the
ministerial meetings on select agenda; and encourage the proliferation of FTAs;
as it is a positive sign of self-imposed consensus among member nations. The
proliferation of FTAs, when plateaus would lead to the natural unification of
the agreements on a vast scale with considerable ease and finesse. The
effectiveness of WTO in its administration, surveillance and enforcement of the
FTAs is a strategically critical move towards achieving its ultimate objective
of a world with complete free trade in all aspects.
Also, from the perspective of
individual nations, the FTAs play a vital role in giving a breather to strengthen
their economies and decide upon competencies. This again is a prerequisite to
withstand the grandeur of complete and unified free trade among every member
nation. A well thought-out strategic long term focus and dynamism in implementation
is the need of the hour in the WTO. In the present scenario, dispute settlement
is a key area which needs a much closer attention of the WTO's governing body
than a Free Trade in totality.
The focus of WTO in modalities to ensure
proper representation of member nations during discussions on trade talks and
policy decisions, transfer of information, knowledge based assistance to infrastructure
and technological up-gradation; that minimises the burden of the Dispute Settlement
Board (DSB) is worth to be considered success. For instance, in the Indian domestic
scenario, strategically planned enormous investments in cold chains is a critical
element of Amul's success? and it took its time!
The WTO is a very unique and
splendid organisation that aims to unify every member as equal entities on a
level ground with free and fair trade ensuring progress and development. Twenty
years is infancy given the skyscraper objective. The present stumbling stones
indicate the need to revise the point and increase the length, of focus. The
ultimate success of WTO shall be characterised by every member nation becoming
highly specialised in select areas of trade - be it products or services; with
unimaginable level of precision and core-competency thereby enhancing the life
of every individual in a positive manner.
