Editorial of the "World". The North Atlantic Treaty Organization (NATO) is "Brain dead", says Emmanuel Macron. She's not the only one. The World Trade Organization (WTO) is also on the verge of losing one of its vital organs. Since Wednesday, December 11, the appeal of the settlement of disputes between the 164 member states is de facto paralyzed, for lack of a sufficient number of judges.
By blocking the renewal of two posts, Donald Trump's United States have achieved their goals: to disconnect an essential tool of multilateralism to replace it with the law of the strongest. This is a setback in the way trade relations operate, which opens a period of uncertainty.
Since the creation of the WTO in 1995, the United States has had difficulty accepting that the Dispute Settlement Body (DSB) is a supranational authority. However, Washington has not been deprived of using it regularly to win the case. The United States has just condemned the European Union (EU) for unlawful aid granted to Airbus to the detriment of Boeing.
The problem, from the American point of view, is that sometimes the United States is condemned in turn. This should be the case in a few months for a dispute in which, this time, it is the EU that accuses the United States of having unduly supported Boeing financially, thus penalizing Airbus.
Washington denounces "Judicial activism" of the WTO. But Americans mostly give the feeling of not complying with the rules only when they are in their favor. Since his arrival at the White House, Donald Trump considers the Organization as a hindrance to go around in circles. His trade war with China, led by unilateral sanctions, multiplies the sprains to international rules. On the other hand, the United States is in no position to challenge the supranationality of the WTO as it seeks to impose its rules on the rest of the world through the extraterritoriality of US law.
New global mess
That the WTO needs to reform, nobody today disputes it. The institution is threatened with obsolescence. The unanimity required to complete a round of negotiations ended up blocking the signing of global agreements. Then, the rules were set when China or India were still economic dwarves to whom many commercial advantages had been granted. Their rise in power changes the game. The WTO must adapt. It is therefore urgent to review the conditions for allocating state subsidies to many Chinese companies.
But, by preventing the ORD from functioning, Washington is making the interstate relations go backwards. Donald Trump has already given a taste of this new world disorder. The United States will be in a position to wring the weaker arm, such as the renegotiation of the North American Free Trade Agreement signed on December 10 with Mexico and Canada. And when the adversary is able to resist, as is currently the case with China, there will be endless negotiations, punctuated by threats, which are all factors destabilizing world trade.
Without being sufficiently determined to reform the WTO, Europeans are now trying to find new rules in the game. But what can a party whose main player has withdrawn look like?
