WTO prevents USA from trade wars

WTO Appellate Body (AB) prepares for reduced slate of judges by December 10. In this regard, the early termination of the functions of this arbitration court is now actively discussed as disputes will be decided by only one judge. The reason for such a crisis is that the USA prevents the appointment of new judges, RISS expert Vyacheslav Kholodkov considers.

The main Washington's complaint is that the judges of the arbitration court have big salaries. The White House wants to reduce their salaries by 13 thousand dollars a year. "The US demand to reduce high salaries of judges seems unserious. The USA doesn't put its representatives at the IMF or the World Bank in such bad working conditions. Perhaps the fact is that the three current Appellate Body members are developing countries: India and China," the analyst pointed out.

The USA has warned that it may stop funding the WTO (the US contribution to the WTO is about 11%). A meeting of the Budget Committee was held November 27, but no consensus was reached.WTO Appellate Body has long been a magnet for US protests. Decisions of AB often contradict the interests of the world hegemon. The USA would like the WTO being permanently subordinated to the American order. This is especially true during trade wars. If WTO funding for 2020 is still not approved, all trade disputes previously resolved in the arbitration court will begin to be resolved on a bilateral basis. In such a situation, the United States as a strong power will have an advantage. But if AB and the WTO cease to exist, world trade will begin to decline. In this case, the crisis is inevitable," V.Kholodkov underscored.