The WTO: A Sweet or Sour Chinese Banquet?

Abstract

Trade is one of the longest surviving human activities, becoming more far-flung, varied and valuable over time. The rules governing trade — even free trade — have grown more complex with millions of new players and products, giving rise to the multilateral trade organization to serve as King Solomon. In theory, governance of international trade organizations takes the form of “One Country, One Vote.” In practice, whatever the formal rules, a strong leader sits atop and sets the agenda in a hierarchy resembling the Empire State Building. Bill Clinton’s Trade Representative, Charlene Barshevsky, unabashedly used the word “push” rather than “persuade” to describe America’s leadership:

It is vital to the long-term prosperity and prestige of the United States … to take full advantage of our strong global position and continue to push our trading partners for even more open markets and economic liberalization. If we abdicate our strength, we risk missing a prime opportunity to advance those policies and values that have been so instrumental in making our economy the strongest and most efficient in the world. (emphasis added, Barshewsky 1998)