The World Trade Organization (WTO) has been embroiled in problems over the past months and experts are urging the organization to transition into a modernized system that will cater to the new world's needs.
Secretary-General of the International Chamber of Commerce, John WH Denton stressed in his report for the East Asia Forum that supporters of the WTO should continue urging the organization to modernize its system. He added that supporters should not abandon the trade governing body and instead encourage it to adapt to modernization.
Hopes for the WTO have been low ever since the organization experienced delays in appointing judges. The delay has also hampered judgment over cases lodged by countries suffering trade issues.
The United States played a major role in blocking the appointment of new judges into the organization's Appellate Body. The appointment delays have affected global businesses that are still waiting for resolutions to their trade dispute cases.
Furthermore, the WTO has been blamed for contributing to the increasing trade inequality in the global market since the organization failed to address several international issues. The body has also been accused of allowing certain countries to get away with unacceptable behavior that does not connote the organization's mission and vision.
While the organization's reported shortcomings are now known worldwide, Denton said businesses and trade-inclined bodies should further advocate for reform within the WTO to prompt action and change.
Digital trade is one of the latest reforms that some experts have recommended for the WTO and international markets. The International Chamber of Commerce (ICC) launched a Global Dialogue on Trade late last year that helped explain the importance of a modern system in trade-related bodies that affect global markets.
Denton said the WTO can gain insights from ongoing debates that the ICC initiated last year, adding that recommendations from the discussions could help transform the organization into a governing authority that caters to the needs of businesses in the technological era.
Late February, WTO Director-General Roberto Azevedo admitted that time is running out on the supposed appointment of new judges. According to Reuters, Azevedo said the organization will see a significant slowdown in handling cases since the Appellate Body only has three judges instead of seven. The organizational chief said WTO is having a hard time engaging the United States in reform recommendations initiated by the European Union previously.
Azevedo further noted at that time that he does not see an end to the U.S. blockade. It is unclear when new judges will be appointed, considering that two of the three judges will step down later this year.
