How Canada is Involved and Affected by the WTO

How Canada is Involved and Affected by the WTO

The following are broader ways in which Canada has been involved in the activities of the WTO. First, as initially known as the GATT, Canada was part of the four critical members known as the Quadrilateral that formed a strong backbone for the formation of the WTO (Krikorian, 2012). The leading that Canada enjoyed ensured that it became a leading figure in the formation and subsequent formulation and ratification of policies that have seen the WTO operate effectively in the past two decades.

Again, over 250 Canadians have served as members of various committees and panelists of multiple boards in the WTO (Koopman, & Hancoc, 2019). Based on the records, Canada has been immensely represented in the WTO as most of its citizens serve under different capacities in the WTO than any other country (Koopman, & Hancoc, 2019). Such an aspect highlights the magnitude of Canada’s involvement in the issues related to the WTO.

Finally, Canada’s involvement has seen it assuming a more significant role in the Appellate Body of the WTO through overseeing dispute resolution and crafting the WTO’s mechanisms for conflict resolutions among members (Krikorian, 2012). Since its establishment as the GATT, Canada has been at the forefront of ensuring that there exists a fair and just mechanism for conflict resolution among members through the formulation of policies and ratification of treaties as passed (Johannesson & Mavroidis, 2016). Further, Canada has assumed the role of an observer in over 154 cases that involves other countries. Such aspects have elevated the role of Canada in the WTO and ensured that its continued involvement is intact in different ways.

How Canada is affected by the WTO

Though the WTO has done much in resolving the conflicts and removal of trade barriers, some of the rulings have immensely affected Canada, limited its production, and subjected it to a more stringent measure that curtails its production. For instance, the conflict between the European communities in the description of scallops, where Canada was one of the complainants, resulted in mutual agreement between the countries involved (Johannesson & Mavroidis, 2016). Such resolutions outside the WTO did less in shrinking markets for Canada in France and the EU. Further, the WTO framework for resolution of trade disputes takes relatively more extended periods, an aspect that immensely hurt the economy of Canada as the conflicts drag on (Johannesson & Mavroidis, 2016). A perfect example of that instance is the case where Canada was the main complainant against the measures concerning the importation of Canola seed by China.

Challenges Facing the WTO

The WTO faces multiple challenges that revolve around the ratification of its agreements, strict adherence to the existing rules, and opportunistic exploitation of any legal loopholes to impose unnecessary tariffs (Al-Fatlawi, 2018). The following are the specific challenges of the WTO. First, the multilateral trade negotiations could take relatively long to be realized as most member states often try to undermine the negotiations that do not take into account their interests (Koopman, & Hancoc, 2019). The perfect example is the Doha Development Round that has taken over decades to realize the liberalization of trade and the much-needed reforms in the WTO. Additionally, the WTO rules are undermined by significant economies. Countries such as the US and China are engaged continuously in imposing unilateral tariffs without any regard to the WTO’s establishments, an aspect that has led to inflamed tensions that the WTO cannot address (Al-Fatlawi, 2018). Again, countries are using the WTO provision of vital security interests clause to justify the imposition of tariffs and spark the global trade tensions (Koopman, & Hancoc, 2019). Further, pioneer countries like the US have the upper hand in paralyzing hearings of the WTO Appellate Body. Currently, the US has blocked all the nominees in the body, bringing the resolution of conflicts at the halt.

One future challenge that the WTO faces is the balance between executing its mandate and maintaining the sovereignty of nations. Currently, the WTO is accused of overstepping its mandate and undermining the sovereignty of countries like the US and China (Koopman, & Hancoc, 2019). Such cases are bound to arise, and this could pose an existential threat to the global trade body.