Back in 2019, I released this video to explain how the World Trade Organization (WTO) has been a net plus, helping to lower trade taxes and other barriers to cross-border commerce.
I’m normally not a fan of international bureaucracies. But, unlike entities such as the International Monetary Fund and the Organization for Economic Cooperation and Development, the WTO has a good track record.
Ever since it was created, trade taxes have been falling.
Sadly, though, the WTO has been weakened in recent years. Trump bears some of the blame, to be sure, but other politicians (including Biden) have caused problems because of their protectionist policies.
Foreign politicians also are pushing in the wrong direction. For instance, the European Union may be about to trigger a global trade war by pushing for carbon protectionism.
That’s the bad news.
The good news is that this could be an opportunity for a reinvigorated WTO. As reported by Reuters, India will be bringing a case to block the EU’s anti-trade scheme.
Indian plans to file a complaint to the World Trade Organisation over the European Union’s proposal to impose 20% to 35% tariffs on imports of high-carbon goods like steel, iron ore and cement from India, top government and industry sources said. …”In the name of environment protection, EU is introducing a trade barrier that would hit not only Indian exports but also of many other developing countries,” said a top government official with direct knowledge of the matter. The government was planning to file a complaint to the WTO against the EU’s unilateral decision and would seek relief for exporters, particularly small companies, the official said without disclosing further details. India sees the proposed levy as discriminatory and a trade barrier.
Some people may point out that India’s government is very bad on trade, and that’s true. But the fact that Indian politicians are hypocrites does not mean the EU’s protectionism is justified.
Blocking the EU’s awful plan is an opportunity for the WTO to reclaim its role as a protector of the interests of taxpayers and consumers.
Fingers crossed, the world needs free trade!
P.S. Today’s column is about how the WTO hopefully can stop something bad. Unfortunately, I don’t think the organization has the ability to push for anything good. If there is any progress in the future, it will probably come from bilateral and plurilateral free trade agreements.
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Image credit: World Trade Organization | CC BY-SA 2.0.
