The rule-based world order under the World Trade Organisation (WTO) is being threatened as the US attack on Venezuela has been dubbed as the beginning of new world disorder violating basic norms of international law, experts have warned.
In the first week of 2026, the US attacked Venezuela and deposed its long-serving President Nicolas Maduro, President Donald Trump said, in Washington’s most direct intervention in Latin America since the 1989 invasion of Panama.
Economic strategist and regional expert Dr Mehmoodul Hassan Khan said, “the emerging global geopolitics, rise to power politics and reactivation of Cold War mentality has ruined the rule-based world order, which has directly damaged the strategic importance, scope, utility and productivity of the WTO”.
“WTO is mandatory for peaceful conflict resolution and sitting at the apex of business, commercial, economic and industrial arbitration at international level. It acts like a guarantor of business ethics and anti-salvo to law of the jungle,” he maintained.
Khan said the Global South consisting of developing and under developing countries and China has been advocating rule of the law, just global system, and multiculturalism.
In this connection the Chinese President Xi Jinping has already announced Global Governance Initiative, supporting a new world order based on rules, laws and respect of the economic security, political sovereignty and social harmony.
“China is the diehard supporter of the free, effective and transparent WTO,” Khan said.
According to him, the US president’s move against Venezuelan Maduro was intended in part to counter China’s socio-economic influence.
“It fears that the attack on Venezuela will have a cooling effect on Latin American engagement with China. According to many official figures, bilateral trade between Latin American region and China has more than doubled in the last decade, growing from $235.9 billion in 2015 to $518.47 billion in 2024.”
According to many regional economists, he continued, the trade could exceed $700 billion by 2035.
“China has now become the second largest trading partner of Latin America and the largest for countries like Brazil and Argentina.”
Khan was of the view that the chessboard of international politics was still open to secure the lion’s share and China being the factory of the world should sincerely try to resolve the conflicting realities through dialogue, diplomacy and development, but US attack on Venezuela became the biggest setback to Global South, BRICS and even Shanghai Cooperation Organisation (SCO).
The geopolitical readjustment of China & Russia and geostrategic strength of these international forums will decide the future and prospects of the Belt and Road Initiative (BRI) and the Chinese investments and role during 2026 and beyond.
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International trade expert Aadil Nakhoda said the use of sanctions on countries not compliant with US interests were likely to become more prominent.
“Although, US has more control over the Venezuelan oil reserves, it is still not clear how the oil market will eventually react to the new situation in the long-run as sanctions continue to be imposed. There will be likely an ease on its trading but the mechanism behind it is not clear.
“Protectionism and the retreat of the US from international organisations does signal challenges to their sustainability as effective organisations. However, smaller economies need such entities, while larger countries that support rule based trading will take a more prominent role. We may see organisational changes but not a complete abandoning of them,” he said.
Commenting on future prospects of BRI and Chinese investments in Latin America during 2026, Nakhoda said that would likely continue as Brazil remained an important player and destination, while China would likely continue to push for a larger role in the region.
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