investment) has resulted in an increased international economic interdependence. Together with other factors, the strong increase of international trade (significantly faster than the growth of world GDP) and of other aspects of economic interaction (e.g.

These negotiations result in binding international agreements that can be enforced in a highly effective, compulsory and exclusive quasi-judiciary. The reason why the WTO is important and unique, however, is also that it has been and continues to be the forum in which trade negotiations take place at the worldwide level in subsequent rounds.

Its membership comes close to that of a universal organisation, even more so if one considers that a significant proportion of the remaining non-Members are currently negotiating their accession to the WTO. Its agreements cover some 95% of international trade and regulate the trade of goods and services as well as the protection of intellectual property rights. The World Trade Organization (WTO) currently has a membership of 148 sovereign States and independent customs territories. The suggestion is that of reviving the possibility of voting as a potential solution of last resort. The intention of this paper is not to call for a hasty recourse to voting or for voting by small margins. For reducing the gap in effectiveness between the WTO’s political bodies and its dispute settlement, the most realistic options are those that involve small gradual steps. Use should be made of Rule 33 of the WTO’s Rules of Procedure which requires subordinate Councils, Committees and other bodies of the WTO to refer a matter upwards whenever they are unable to reach consensus. Increasing the implicit costs of the veto would be another instrument of this kind. This would help encourage Members to block consensus only in defence of important interests. It would be fruitful to make operational the currently unused authoritative interpretation provided by the WTO Agreement and to support the quest for consensus in the WTO with a visible shadow of a vote. The (quasi-)judiciary beyond what was foreseen, thereby threatening its legitimacy. The relinquishment of the political decision-making system strengthens Consensus of course has many advantages, but it is questionable whether it is also more democratic than the majority rule. Consensus does not provide for equality (in terms of decision and influence) because not every Member has the same ability to maintain vetoes. Consensus also inherently favours the status quo and can make it extremely difficult to achieve change. Although the consensus practice generally works well, it nevertheless implies the risk of deadlock and in particular the Membership’s inability to respond legislatively where it disagrees with a panel’s or the Appellate Body’s legal interpretation.

Nevertheless, voting was not abandoned in the WTO Agreement. The WTO Agreement reflects the evolution from votes to consensus in the GATT 1947. The GATT 1947 only spoke of voting and did not mention the word ‘consensus’. Although the WTO Agreement foresees votes where consensus cannot be reached, the practice of consensus dominates the process of decision-making. The WTO therefore needs an effective decision-making system capable of resolving diverging interests. Globalisation creates a demand for international rule-making, and the WTO remains the forum for creating binding and enforceable international trade rules.

Impact of wto on trading blocs