A Peterson Institute blogpost by Jeffrey J. Schott brought to light an interesting draft joint resolution introduced in the US Congress to walk out of the WTO!
Titled 'Withdrawing approval of the Agreement Establishing the World Trade Organization", the joint resolution of the Senate and the House of Representatives has been introduced by Senator Josh Hawley on May 7 2020.
The US Senate and House of Representatives enacted the Uruguay Round Agreements Act in 1994 approving the WTO Agreements under section 101 of the Act. It enabled the President of the US to accept the Uruguay Round Agreements and implement Article VIII of the WTO Agreement, which established the legal personality of the WTO.
The joint resolution seeks to withdraw this approval given thus terminating US membership of the US in the 164 member organisation.
While this is unlikely to happen, the reasoning of Jeffrey Schott is interesting:
Titled 'Withdrawing approval of the Agreement Establishing the World Trade Organization", the joint resolution of the Senate and the House of Representatives has been introduced by Senator Josh Hawley on May 7 2020.
The US Senate and House of Representatives enacted the Uruguay Round Agreements Act in 1994 approving the WTO Agreements under section 101 of the Act. It enabled the President of the US to accept the Uruguay Round Agreements and implement Article VIII of the WTO Agreement, which established the legal personality of the WTO.
The joint resolution seeks to withdraw this approval given thus terminating US membership of the US in the 164 member organisation.
While this is unlikely to happen, the reasoning of Jeffrey Schott is interesting:
As a student of history, Senator Hawley should revisit the major conferences in the 1940s that molded postwar international economic institutions. He will discover that the multilateral trading system is based on American values, law, and practice and designed by American architects. Yes, the WTO needs updating. But the United States, as it has done throughout the postwar era, should be leading that effort instead of obstructing it. With responsible US leadership, our allies will follow.The above passage lends credence to the oft-repeated claim made by many developing countries that they need to play a more active part in "rule-making" rather than be mere "rule receivers". That is not to say that there is no balance in WTO Agreements - but the fact that tend to reflect certain aspirations of a few developed countries, does not augur well for a balanced system. It should be an endeavour for the developing world to constantly shape, re-invent and engage in a multilateral system that upholds not only universal, multilateral values but also ideals, aspirations and needs of their constituencies.
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