Ensuring Continued Support for the Rules-Based Multilateral Trading System: The Need for a Public-Private Approach

The stability and resilience of intergovernmental and supranational institutions is increasingly being tested. The constraints that the WTO Agreement places on executive organs in its Members are being questioned in academia and by politicians. Reform of institutional aspects of the WTO's dispute settlement process is coupled to the re-appointment of Appellate Body Members. These are interesting times for the rules-based multilateral trading system, to say the least. This think piece raises more questions than it can possibly answer. Yet, a central element that runs as a common thread through this contribution is the question whether trade liberalization, free movement of capital, and the resulting facilitation and emergence of GVCs have resulted in an inability of WTO Members to address domestic problems such as unemployment among workers in the manufacturing industry. Technological innovations such as automation and digitalization have equally contributed to a shift in the labour market from the manufacturing sector to other sectors. This raises questions as to the most appropriate and effective way to address the negative aspects of globalization and to ensure that the support for the rules-based multilateral trading system is not eroded. This contribution addresses the current criticism of the negative side effects of globalization and examines proposals at the bilateral level that are aimed at "conditionalizing" the liberalisation of trade. Thereafter it advocates a "public-private" approach at the domestic level which involves all stakeholders, as it is essential that those "left-behind" by globalisation are actively engaged with.