The Minister of Economic Development of Russia announced the stagnation of the WTO, and not its collapse
Quick Look
Russian Economic Development Minister Maxim Reshetnikov said that the World Trade Organization has not collapsed, but has been stagnating since 2019 due to the US blocking of the appeal level dispute resolution system, but retains the potential for modification to new economic conditions.
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Why It Matters
The United States has been blocking the appellate level of the World Trade Organization's dispute resolution system since 2019, preventing appeals in trade disputes and causing the organization to stall.
At present, it cannot be said that the World Trade Organization (WTO) has collapsed. Russian Minister of Economic Development Maxim Reshetnikov spoke about this. He was quoted by TASS.
According to him, it is more correct to talk about the stagnation of the WTO, which began in 2019, when the United States blocked the dispute resolution system, or more precisely, its second, appeal level. Therefore, disputes cannot be resolved, since the party that does not agree with the decision of the first instance begins to appeal to nowhere, to a body that does not exist. Thus, all decisions are suspended.
However, as Reshetnikov is sure, the WTO still has great potential. It needs to be modified to suit new conditions, since over the decades the economy has moved forward and trade relations have become more complex.
Open Questions
- What specific modifications are proposed for the WTO?
- When is the appellate level expected to be restored?
- Which countries support WTO reform?
