Why the future of the World Trade Organisation looks bleak

Two Britons are reportedly in the running to take charge of the WTO – but, writes Sean O'Grady, its global influence is waning

Liam Fox, among those tipped to become the new secretary-general, speaks during a session of the World Trade Organisation in September 2016 (Getty)

With only the possible exception of the World Health Organisation, the World Trade Organisation is the most battered and friendless of the many international bodies that have found themselves out of favour in the recent backlash against globalisation and internationalism. The WTO, formerly known as the General Agreement on Tariffs and Trade (GATT), was established as one of the pillars of the post-Second World War international economic architecture, alongside the International Monetary Fund and the World Bank, all allied to the United Nations. The GATT was designed to prevent protectionism and trade wars, and to bring down barriers to exports and imports, which it did. Yet, for all its formidable past achievements in stimulating international economic growth, thus lifting billions of souls out of poverty, it is today virtually moribund.

A new secretary-general for the WTO is due to be appointed soon, and there is some talk of a British appointment. The very different personalities of Peter Mandelson and Liam Fox are reportedly tossing their names in the ring, the latter with the support of the UK government. Mandelson is a former EU Commissioner for Trade, with four years experience at the top of one of the world’s leading economic blocs. Mandelson says the WTO “needs fixing”, something Mandelson is known to be good at, though the WTO may be in a worse state than the Labour Party ever was.

Fox had about three frustrating years as secretary of state for international trade in Theresa May’s cabinet, with not much to show for it.