What future for the WTO in a changing international order?

This briefing by Razeen Sally examines the challenges facing the World Trade Organization (WTO) amidst a shifting global power structure characterized by overwhelming US dominance and the decline of European and Japanese influence. The author argues that the WTO is suffering from regulatory overload, excessive legalisation, and political deadlock, which have crippled its ability to function as a negotiating mechanism. To survive as a vehicle for liberalisation, the author suggests the WTO must return to its core purpose of reducing trade barriers and secure clear US leadership supported by pragmatic coalitions in the Asia-Pacific region.

• The international political environment has shifted toward a state of 'liberal imperialism' where US leadership is uncontested following the collapse of the Soviet Union and the relative decline of Europe and Japan.
• The WTO is facing 'regulatory overload' and a trend toward standards harmonisation, which the author claims harms developing countries by increasing costs and reducing national regulatory autonomy.
• The 'legalisation' of the WTO is viewed as a risk because governments are increasingly using dispute settlement litigation to fill regulatory gaps rather than reaching policy choices through diplomacy.
• The WTO's negotiating capacity has been severely diminished by 'UN-isation', characterized by political grandstanding and procedural delays, leaving the organization in a state of drift and deadlock since the late 1990s.
• The proliferation of regional trade agreements (RTAs) is a reaction to stalled multilateralism and risks creating a 'spaghetti-bowl' of discriminatory red tape that diverts resources away from the WTO.
• The author asserts that the Doha Development Agenda (DDA) should prioritize market access in agriculture, services, and non-agricultural goods over implementation squabbles or the 'Singapore issues'.
• For the WTO to become workable again, the author argues that the US must move out in front of the EU in leadership and form coalitions with market-access focused countries in the Asia-Pacific, including China.
• If a substantial market access package is not achieved by 2006/7, the author predicts the WTO will cease to be a vehicle for liberalisation, leading to a world of overlapping discriminatory arrangements where low-income countries are the primary losers.

APA

Sally, R. (2003). What future for the WTO in a changing international order? South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2009/02/tpb3.pdf

Chicago

Sally, Razeen. What future for the WTO in a changing international order? South African Institute of International Affairs, 2003. https://saiia.org.za/wp-content/uploads/2009/02/tpb3.pdf.

Wikipedia

{{cite report |last1=Sally |first1=Razeen |title=What future for the WTO in a changing international order? |publisher=South African Institute of International Affairs |date=September 2003 |url=https://saiia.org.za/wp-content/uploads/2009/02/tpb3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sally2003what, author = {Sally, Razeen}, title = {{What future for the WTO in a changing international order?}}, institution = {South African Institute of International Affairs}, year = {2003}, month = sep, url = {https://saiia.org.za/wp-content/uploads/2009/02/tpb3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }