Multilateralism is waning and one of the world’s leading multilateral institutions, the World Trade Organization, is in crisis, because the United States has been blocking new appointments to its dispute settlement mechanism’s Appellate Body since 2018.
In the run-up to the WTO’s 13th Ministerial Conference in February, some optimists hoped to see progress on specific issues, such as an agreement not to impose tariffs on digital commerce, but expectations were generally low.
The pessimists were right. India led the charge against extending a moratorium on e-commerce tariffs, and only a last-minute deal prolonged it for another two years. After that, it is expected to expire. India and its allies celebrated the outcome as a victory. For the first time in years, the culprit undermining the WTO was not the U.S. but developing countries (including Indonesia, South Africa, Brazil and others).