What role does the World Trade Organisation have in the future?

A lot has taken place across the world in recent years. We have witnessed Donald Trump's approach to international politics, Covid-19, the UK's exit from the European Union and conflict in Ukraine.

Many feel that the WTO still has a significant role to play, especially post-covid. As we all know, the Covid-19 pandemic caused huge economic issues – businesses across the board suffered losses and supply chains were heavily disrupted. As the global economy continues to recover, many feel that the WTO plays an important role in the process by facilitating frictionless trade. 

However, our research showed that some in the industry feel the WTO organisation is gradually losing its importance, pointing to the role of anti-free trade sentiment. 

Our conversations found that the growing anti-free trade sentiment has been fundamental in changing how people view international trade, with the UK’s exit from the European Union, and in particular the EU Single Market and Customs Union, being an example. 

During Donald Trump’s time in office, the relationship between the WTO and the US was fractured and some strongly believe Trump’s actions damaged the WTO, leaving it non-functioning. Our research into the area highlighted the negative impacts this had on WTO negotiations and on appeals cases, whilst many in the field suggested the international trade body is weaker than before, less relevant and less active. 

International trade will increasingly be impacted by factors such as geopolitical tensions and climate change, to name but a few, but it will remain as important as ever in increase economic opportunity.

The WTO has historically played an important role but there are some doubts about the efficacy and relevancy of it now, as a result of the many challenges it has faced in recent years, and our research suggests that more and more countries are considering alternative avenues, including bilateral trade agreements.