Trade Liberalization's Uneven Gains: A Critical Analysis

Jomo Kwame Sundaram, who used to be the UN Assistant Secretary General for Economic Development, believes that the push for trade liberalization by the U.S. and other global entities hasn't helped all nations fairly. Instead, the U.S. has favored its own interests, often hurting developing countries in the process. The WTO, formed through the 1994 Marrakech Agreement, has reinforced a neoliberal framework that limits development strategies. Since Obama’s presidency, the U.S. has blocked appointments to the WTO’s dispute resolution system, further hindering progress. This liberalization has stifled industrial growth in the Global South, cut essential tariff income, and weakened financial stability. Additionally, agricultural subsidies from wealthy nations pose challenges, while structural adjustments have negatively impacted small farmers. Studies indicate most developing economies would face losses from the Doha Round. There’s insufficient evidence that liberalization effectively tackles poverty or hunger. The article criticizes Trump’s 'America First' approach for hampering global economic growth and weaponizing trade against allies and developing nations. It also suggests that compromises from international financial bodies have reinforced Western dominance, ultimately making sustainable development nearly unattainable for less developed states.