Since its creation in 1995, the World Trade Organization (WTO) has worked to maintain and develop international trade. As one of the largest international economic organizations (alongside the International Monetary Fund (IMF) and the World Bank), it has strong influence and control over trading rules and agreements, and thus has the ability to affect a country's economy immensely . The WTO policies aim to balance tariffs and other forms of economic protection with a trade liberalization policy, and to "ensure that trade flows as smoothly, predictably and freely as possible". Indeed, the WTO claims that its actions "cut living costs and raise standards, stimulate economic growth and development, help countries develop, [and] give the weak a stronger voice." Statistically speaking, global trade has consistently grown between one and six percent per annum over the past decade, and US$38.8 billion were allocated to Aid for Trade in 2016.
Yet several criticisms of the WTO have arisen over time from a range of fields, including economists such as Dani Rodrik and Ha Joon Chang, and anthropologists such as Marc Edelman, who have argued that the institution "only serves the interests of multinational corporations, undermines local development, penalizes poor countries, [and] is increasing inequality", and have argued that some agreements about agriculture and pharmaceutical goods have led to restricted access to food and healthcare, thus causing large numbers of deaths. Several factors are alleged to contribute to these conditions, including but not limited to: the most favored nation rule (MFN), national treatment policies, and failure to regard the infant industry argument. Critics argue that the policies that support these principles fail to protect developing nations, and in some cases take advantage of them. For example, UNCTAD estimates that market distortions cost developing countries $700 billion annually in lost export revenue.
Martin Khor
Martin Khor argues that the WTO does not manage the global economy impartially, but in its operation has a systematic bias toward rich countries and multinational corporations, harming smaller countries that have less negotiation power. Some suggested examples of this bias are: Rich countries are able to maintain high import duties and quotas in certain products, blocking imports from developing countries (e.g., clothing); According to statements made at United Nations Conference on Trade and Development (UNCTAD, 2005), the use of NTBs (non-tariff barriers), based on the amount and control of price levels has decreased significantly from 45% in 1994 to 15% in 2004, while use of other NTBs increased from 55% in 1994 to 85% in 2004, such as anti-dumping measures allowed against developing countries; The maintenance of high protection of agriculture in developed countries, while developing ones are pressed to open their markets; Many developing countries do not have the capacity to follow the negotiations and participate actively in the Doha Round; and The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement, which limits developing countries from utilizing some technology that originates from abroad in their local systems (including medicines and agricultural products).
Khor argues that developing countries have not benefited from the WTO Agreements of the Uruguay Round and, therefore, the credibility of the WTO trade system could be eroded. According to Khor, "one of the major categories of 'problems of implementation of the Uruguay Round' is the way the Northern countries have not lived up to the spirit of their commitments in implementing (or not implementing) their obligations agreed to in the various Agreements." Khor also believes that the Doha Round negotiations "have veered from their proclaimed direction oriented to a development-friendly outcome, towards a 'market access' direction in which developing countries are pressured to open up their agricultural, industrial and services sectors." Jagdish Bhagwati asserts, however, that there is greater tariff protection on manufacturers in the poor countries, which are also overtaking the rich nations in the number of anti-dumping filings.