Dispute Settlement Crisis: The Appellate Body is non-functional due to blocked appointments by the US since 2019, weakening enforcement.
Negotiation Stalemate: Doha Round failed due to disagreements on agriculture, market access, subsidies.
MFN Erosion: FTAs bypass MFN obligations, fragmenting trade rules, and undermining the multilateral vision.
Rise of Protectionism: Trade wars, unilateral tariffs using “national security” exceptions weaken WTO principles.
Inability to Address New Issues: WTO lacks rules for the digital economy, e-commerce, and climate-related trade.
Power Imbalance: Developed countries push reforms, while developing countries resist, fearing loss of development space.
Geopolitical Tensions: US-China rivalry, Russia-Ukraine war, and strategic blocs reduce cooperation within the WTO.
Developing Country Status Disputes: Disagreement over benefits for large economies like China.
India’s Concerns: MSP exceeding subsidy caps and reluctance to negotiate labor/environmental standards.
WTO’s Significance: Despite challenges, it facilitated trade growth, reduced poverty, and provided a platform for the Global South.
Revival Measures: Equitable globalization, enforceable digital trade rules, restoring dispute settlement, redefining SDT based on dynamic criteria, trade-climate linkages, and a permanent reform council.
Loss of Compass: WTO is not performing negotiating, dispute settlement, or trade monitoring functions, according to some experts.
US Distrust: The US believes it lowered tariffs too much compared to other countries and feels MFN has not worked.
China Challenge: WTO rules were inadequate to address China’s dominance and trade practices.
