WTO can be devoid of a true global trading powerhouse. This can have catastrophic effect for all the parties involved. Here's how.
SOURCE BCCL
As the US Presidential elections draw closer, Trump is taking drastic steps to woo the nationalistic voter base and causing greater damage to American leverage and soft power. In an anti-China rhetoric claiming WTO is a puppet of China, Trump has decided to take steps to leave the organisation founded in 1995 to regulate multilateral trade amidst rapid globalisation.
IMPACT ON WORLD:
If America exits WTO, world's leading exporter will exit the body ensuring smooth flow of goods & services throughout the globe. Thus, a major player will not be present t important sessions, meetings and voting rounds.
MYTH BUSTED: CHINA AIN'T A TRADING SUPERPOWER
There is a greater probability of mass exodus from WTO by US allies like UK, Canada, India etc fearing Chinese domination.
Skeptics of WTO have a window of opportunity to prove that its a kaput organisation.
The dismantling of WTO can give a free reign to countries who do not believe in free trade and can also lead to a tariff based trade war between various nations on a bilateral basis (as seen in 2019 between US-China)
MY VIEWS:
I THINK WTO IS A FUTILE ENDEAVOR BECAUSE:
It lacks transparency.
It has enhanced the wealth gap between developed and developing nations despite giving an impetus to globalisation.
A QUICK LOOK HERE SHOWS INEQUALITY IN INCOME
It could not stop a trade war in 2018-19.
IMAGE VIA BBC
Its practice of free trade was not completely successful as there are still quantitative restrictions like quotas.
TODAY'S ARTICLE WAS PRETTY BASIC AS I HAVE VERY LIMITED KNOWLEDGE ABOUT THE WTO. HOWEVER I TRIED MY BEST TO COVER RECENT OCCURRENCE & GAUGE ITS IMPLICATIONS, THATS ALL STAY SAFE GUYS.
MERCI
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