Criticisms of WTO

Readers Question: Has WTO abused its power?

The WTO is committed to improving free trade amongst its member countries. However, its role has been very controversial and has created polarised views. These are some of the criticisms of the WTO

1. Free Trade benefits developed countries more than developing countries. Developing countries need some trade protection to be able to develop new industries. The WTO have sought to maintain same rules for developing countries, however, many of the existing industrialised nations used tariff protection when they were developing. Therefore, the WTO has been criticised for being unfair and ignoring the needs of developing countries. (This is related to the infant industry argument)
2. Free trade has often ignored environmental considerations. e.g. Free trade has enabled imports to be made from countries with the least environmental protection. Many criticise the WTO’s philosophy that the most important economic objective is the maximisation of GDP. In an era of global warming and potential environmental disaster, this may be the least important.
3. Free trade ignores cultural and social factors. Arguably a reasonable argument for restricting free trade is that it enables countries to maintain cultural diversity. Some criticise the WTO for enabling the domination of the multinational companies.
4. The WTO is criticised for being undemocratic. It is argued that its structure enables the richer countries to win what they desire; arguably they  benefit the most.

See also: Advantages and disadvantages of the WTO