WTO: Cato Piece on Myths and Realities

James Bacchus, former chairman of the Appellate Body of the World Trade Organization penned a piece for the Cato Institute dispelling some of the more egregious myths about the WTO.

Worth a read, the pice can be accessed [here].   We summarize below: 

The World Trade Organization (WTO), established in 1995 as the next chapter after the General Agreement on Tariffs and Trade, functions as the primary global trade mediator. With 164 members, it's a pivotal institution in the global economic landscape, albeit a frequently misunderstood one.

Structure and Autonomy: Contrary to some beliefs, the WTO isn't an expansive bureaucratic entity. It operates with a modest full-time staff, ensuring streamlined operations. Notably, the WTO doesn't possess independent decision-making capabilities. Every decision, rule, and activity, including disputes, stems from collective member government consensus.

Effectiveness Amidst Challenges: While the WTO has its share of imperfections and hurdles, it stands apart from many other international organizations. The majority of trade specialists view the WTO as an effective entity, sidestepping many issues that other multilateral institutions, such as the United Nations, often grapple with.

Debunking Common Misconceptions: Misunderstandings about the WTO abound. Here are some clarifications:

1. Ambitions and Biases: The WTO doesn't aim to become a "world government". Nor is it inherently biased against specific nations, be it the United States or developing countries.
2. Neoliberal Agenda: The organization doesn't enforce a singular "neoliberal" perspective or function purely as a "free trade" entity.
3. Mandate and Power: The WTO operates within its prescribed mandate and cannot impose decisions on member nations.
4. Sovereignty and Policy Space: Far from undermining national sovereignty, WTO respects and acknowledges each member's policy space, allowing them to address domestic concerns.
5. Race to the Bottom and Unfair Practices: WTO rules aren't designed to precipitate a global "race to the bottom." Furthermore, the organization doesn't disregard or remain passive to unfair trade practices, including those from major players like China.