THE WTO'S INFLUENCE ON THE GLOBAL ECONOMY AND MODERN BUSINESS DYNAMICS
Keywords:
international trade, international relations, WTO, global market, multilateral trading system
Abstract
Established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT), the World Trade Organization (WTO) is a pivotal institution overseeing international trade. With 166 member countries accounting for over 98% of global trade, the WTO’s primary mission is to facilitate free and fair trade by reducing trade barriers and resolving disputes. It plays a critical role in ensuring adherence to trade rules, particularly in safeguarding the interests of smaller nations, and addresses a wide range of issues including intellectual property and agriculture. Despite its contributions, the WTO faces significant challenges such as adapting to the digital economy, addressing climate change, and countering rising protectionism. Critics argue that its framework often benefits developed nations at the expense of developing countries, underscoring the need for reform. To remain effective and equitable, the WTO must modernize its processes and policies. This paper examines the WTO’s role in regulating international trade, explores the contemporary challenges it faces, and evaluates potential reforms aimed at enhancing its relevance and ensuring fairness for all member states.
References
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WTO - Dispute settlement (2024) https://www.wto.org/english/tratop_e/dispu_e/dispu_e.htm
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Alschner, W. (2020). Shifting Design Paradigms: Why Tomorrow's International Economic Law May Look More Like the Tax Regime than the WTO. AJIL Unbound 270–74. https://doi.org/10.1017/aju.2020.49. Ottawa Faculty of Law Working Paper No. 2020-30
Bagwell, K. & Staiger, R. (2010). The World Trade Organization: Theory and Practice. Annual Review of economics, 2, 223-256.
Bagwell, K. & Staiger, R. (2011). What Do Trade Negotiators Negotiate About? Empirical Evidence from the World Trade Organization. American Economic Review, 101(4), 1238–73.
Baldwin, R. & Freeman, R. (2020). Supply chain contagion waves: Thinking ahead on manufacturing ‘contagion and reinfection’ from the COVID concussion. VOX EU. https://cepr.org/voxeu/columns/supply-chain-contagion-waves-thinking-aheadmanufacturing-contagion-and-reinfection
Baldwin, R. (2016). The World Trade Organization and the Future of Multilateralism. Journal of Economic Perspectives, 30(1), 95–116.
Baldwin, R. (2016). The World Trade Organization and the Future of Multilateralism. Journal of Economic Perspectives, 30(1), 95-116.
Bhagwati, J. (2004). In Defense of Globalization. Oxford University Press, Oxford.
Bjelić, P. (2002). Svetska trgovinska organizacija, Beograd, Prometej
Bjelić, P. (2017). Zašto je Svetska trgovinska organizacija važna za Evropsku uniju i svetsku trgovinu uopšte? Beograd, Centar za međunarodne i bezbednosne poslove.
Bjorklund, A. (2021). Arbitration, the World Trade Organization, and the Creation of a Multilateral Investment Court. Arbitration International, 37(2), 433–447.
Bown, C. & Reynolds, K. (2017). Trade Agreements and Enforcement: Evidence from WTO Dispute Settlement. American Economic Journal Economic Policy, 9(4), 64-100.
Deardorff, A. & Stern, R. (2002). What You Should Know About Globalization and the World Trade Organization. Review of International Economics, 10(3), 404-423
Elsig, M., Hoekman, B. & Pauwelyn, J. (2016). Thinking about the performance of the World Trade Organization: A discussion across disciplines. RSCAS Working Papers 2016/13, European University Institute.
Evenett, S. (2021). Is the WTO Moratorium on Customs Duties on E-Commerce Depriving Developing Countries of Much Needed Revenue? https://fmg-geneva.org/wp-content/uploads/2021/11/S.-Evenett_-WTO-Moratorium-12-Nov-2021.pdf
Herbert, E. (2020). The role of world trade organisation in international trade and investment. Nnamdi Azikiwe University Journal of International Law and Jurisprudence, 11(1), 47-55.
Hoekman, B.M. & Kostecki, M.M. (2009). The Political Economy of the World Trading System: The WTO and Beyond. Oxford University Press, Oxford.
Howse, R. (2016). The World Trade Organization 20 Years On: Global Governance by Judiciary. European Journal of International Law, 27(1), 9–77.
Islam, R., Omar, R., Khamis, K. & Yatiban, A. (2020). The Role of Economic, Social & Political Integration of World Trade Organisation. International Journal of Management, 11(5), 390-399.
Jackson, J. (2008). The case of the World Trade Organization. International Affairs, 84(3), 437-454.
Limão, N. (2016). Preferential Trade Agreements. NBER Working Papers 22138, National Bureau of Economic Research, Inc.
Matsushita, M., Schoenbaum, T., Mavroidis, P. & Hahn, M. (2015). The World Trade Organization: Law, Practice, and Policy, Oxford University Press.
Narlikar, A. (2020). Reforming the World Trade Organization. https://www.boell.de/en/2020/01/17/reforming-world-trade-organization
Nenci, S. (2020). Do We Still Need the World Trade Organization? Journal of International Commerce, Economics and Policy, 11(3), 2050012.
Payosova, T., Hufbauer, G. & Schott, J. (2018). The Dispute Settlement Crisis in the World Trade Organization: Causes and Cures. Washington D.C.: Peterson Institute for International Economics Policy Brief 18-5.
Qureshi, A. (2022). The World Trade Organization: Implementing international trade norms, Manchester, Manchester University Press.
Radojević, T. (2022). Međunarodna ekonomija, Univerzitet Singidunum, Beograd.
Rapaić, S. (2013). Svetska trgovinska organizacija i preduzeća u spoljnoj trgovini, Beograd, Ekonomski fakultet.
Reis, M., Silva Pôrto, S. & Zago de Azevedo, A. (2021). The impacts of the World Trade Organization on new members. The World Economy, 44(7), 1944-1972.
Rodrik, D. (2011). The Globalization Paradox: Democracy and the Future of the World Economy. World Trade Review, 10(3), 409-417.
Stakić, B. (2014). Međunarodne finansijske institucije, Univerzitet Singidunum, Beograd.
Stiglitz, J. (2006). Making Globalization Work. W. W. Norton & Company.
Wolfe, R. (2020). Reforming WTO Conflict Management. Why and How to Improve the Use of “Specific Trade Concerns”. RSCAS Working Papers 2020/53, European University Institute.
WTO - Dispute settlement (2024) https://www.wto.org/english/tratop_e/dispu_e/dispu_e.htm
WTO - Global Trade Outlook and Statistics (2024) https://www.wto.org/english/res_e/booksp_e/trade_outlook24_e.pdf
WTO - Members and Observers. (2024). https://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm
Zangl, B., Heußner, F., Kruck, A. & Lanzendörfer, X. (2016). Imperfect adaptation: how the WTO and the IMF adjust to shifting power distributions among their members. The Review of International Organizations, 11(2), 171-196.
Published
2025/04/24
Section
Original Scientific Paper
