The World Trade Organization (WTO) finds itself in a precarious position due to President Donald Trump’s tariff offensive, leaving the global trade body powerless to act. Cedric Dupont, an international relations professor and trade expert, explains that Trump’s actions have undermined the WTO’s mission to guarantee predictability in world trade. With the WTO weakened for several years and the legal settlement of disputes paralyzed, the organization is unable to resolve trade disputes involving the United States.
The future of multilateralism in trade is at risk, with other countries’ cooperation determining the fate of the WTO. Despite the threat of inflationary customs duties, there may be an opportunity for countries to come together and address trade issues. Customs threats have always existed, with the WTO aiming to ensure protectionist moves are temporary.
While there is speculation about Trump potentially withdrawing from the WTO, it is unlikely as the organization is not costly for the United States. With the appellate body paralyzed, Trump can act without legal consequences. The WTO’s limited ability to enforce rules may make Trump feel comfortable disregarding them. Despite the challenges, the WTO continues to navigate the complex landscape of global trade in the face of protectionist measures.
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