What’s Next for the WTO After Sabotage by the U.S.

The World Trade Organization’s most critical function as the globe’s trade referee is now paralyzed, and governments are looking for ways to pick up the pieces. On Dec. 11, the WTO’s appellate body -- the preeminent forum for settling worldwide trade disagreements -- lost its ability to rule on new dispute cases. That’s good news for U.S. President Donald Trump, the self-proclaimed “tariff man,” because he can now retaliate against America’s trade partners without fear of WTO oversight. It also means that the global economy is entering a dangerous new era where economic might supersedes international law.

It’s the second tier of a binding dispute-settlement system that determines whether the WTO’s 164 members are abiding by the rules of international trade. The seven-member panel of trade experts has the ultimate say in WTO rulings that can affect the world’s largest companies and billions of dollars in commerce.