The Struggle for Legitimacy in the WTO

Abstract

The WTO faces two major challenges to its legitimacy as an international organization. The first is to make its internal decision making system more transparent and inclusive, particularly with respect to developing and least developed country members ('internal legitimacy'). The second is to improve the WTO's relationship with non-state stakeholders and civil society ('external legitimacy'). The challenges to internal legitimacy result not from defects in the rules, which provide for consensus decision making, but rather from the practice and attitudes of the WTO members. In examining external legitimacy, it is the WTO dispute settlement system that has drawn the most attention. The Appellate Body has been criticized for 'over-reaching' and undermining the rights and obligations of WTO members. Applying Thomas Franck's taxonomy for the legitimacy of international systems of rules to the Appellate Body, it has engaged in a process of clarification of the rules which is a legitimate function as an international tribunal and its duty under the WTO Dispute Settlement Understanding.

Keywords: WTO, trade, legitimacy, international organizations, dispute settlement, globalization

JEL Classification: F1, K2, K3, L1, L5