The Way Forward for the WTO: Reforming the Decision-Making Process

The document assesses the transition from the GATT's 'gentleman's club' model to the WTO's formal rules-based system, highlighting how the principles of consensus and the Single Undertaking have become obstacles to progress. It argues that the rise of emerging economies and the increased complexity of trade issues—including domestic regulation and climate change—have rendered the current system obsolete. The author evaluates several reform options, including weighted voting, an executive committee, and plurilateral agreements, ultimately suggesting that a 'critical mass' or plurilateral approach may be the most practical way to maintain the WTO's relevance.

• The WTO's decision-making system is considered obsolete due to a changing global political economy, characterized by the rise of emerging economies and the US's inability to lead the multilateral trading system following the global economic crisis.
• The General Agreement on Tariffs and Trade (GATT) was more successful in decision-making because it operated as a 'gentleman’s club' with a limited set of like-minded capitalist countries and a narrow focus on manufactured goods.
• The 'Single Undertaking' principle, which requires members to accept all agreements as a single package, has hindered progress because developing countries often lack the capacity to implement complex obligations.
• The Consensus Principle often leads to 'lowest common denominator' decisions to avoid vetos, which maintains the status quo and risks institutional paralysis.
• Informal 'Green Room' consultations are criticized for creating a 'democratic deficit' as they exclude many developing countries due to resource constraints and limited representation.
• Trade and climate change have introduced new complexities into WTO rule-making, specifically regarding 'carbon-leakage' and the potential use of cross-border tax-adjustment measures by developed countries.
• Special and Differential Treatment (SDT) provisions are often viewed by developing countries as ineffectual because they frequently rely on 'best-endeavour clauses' that cannot be legally challenged.
• Plurilateral agreements, where only signatories are bound by the rules, are presented as a practical alternative to the Single Undertaking to prevent the WTO from becoming redundant.
• Proposed reforms such as weighted voting or a formal Executive Committee are likely to be rejected by developing countries due to fears of marginalization and the influence of major powers.
• The author suggests a 'G11' group—comprising the US, EU, Canada, Australia, Japan, Brazil, China, India, Argentina, South Africa, and Mauritius—could be key to pushing through necessary reforms.

APA

Dube, M. (2012). The Way Forward for the WTO: Reforming the Decision-Making Process. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2012/08/Occasional-Paper-118.pdf

Chicago

Dube, Memory. The Way Forward for the WTO: Reforming the Decision-Making Process. South African Institute of International Affairs, 2012. https://saiia.org.za/wp-content/uploads/2012/08/Occasional-Paper-118.pdf.

Wikipedia

{{cite report |last1=Dube |first1=Memory |title=The Way Forward for the WTO: Reforming the Decision-Making Process |publisher=South African Institute of International Affairs |date=July 2012 |url=https://saiia.org.za/wp-content/uploads/2012/08/Occasional-Paper-118.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dube2012way, author = {Dube, Memory}, title = {{The Way Forward for the WTO: Reforming the Decision-Making Process}}, institution = {South African Institute of International Affairs}, year = {2012}, month = jul, url = {https://saiia.org.za/wp-content/uploads/2012/08/Occasional-Paper-118.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }