WTO calls for benefits of trade to be extended

Since the signing of the General Agreement on Tariffs and Trade (GATT) 70 years ago, the multilateral trading system has played a vital role in the global economy and in ensuring peaceful relations among the nations of the world, according to Roberto Azevêdo, director general of the World Trade Organisation.

Speaking at the opening of the WTO’s 11th Ministerial Conference, which took place in December 2017 in Buenos Aires, he said global trade has grown 26 fold to nearly $16trillion annually since 1947.

“We have gone from 23 original members under the GATT — mostly the major economies — to 164 members today, representing the full diversity of economic development. And we have more countries queuing up to join. The WTO now covers about 98% of global trade.

“The system has helped to build prosperity around the world. It has helped to lift a billion people out of poverty in a generation. It has been tested — and it has held firm.

“Faced with a rapidly evolving financial and economic crisis in 2008, the world did not erect trade barriers as in the past — despite the temptation to do so.

“Trading nations held each other to the commitments agreed multilaterally. As a result we avoided unilateral actions, potential trade wars and economic catastrophe. In fact, less than 5% of world imports have been affected by restrictive measures since the crisis. Compare that to the 1930s when global trade shrank by two thirds.”

Azevêdo said in four years the WTO had completed the following trade reforms:

● The Trade Facilitation Agreement;

● The elimination of agricultural export subsidies;

● The adoption of measures to support least developed countries; and

● The expansion of the Information Technology Agreement, eliminating tariffs on trade of about $1.3-trillion.

However he said current sentiment is more inward looking. The threat of protectionism remains present.

“In a rapidly changing world we need to be more inclusive and responsive to members’ needs than ever before.”

He urged that more be done to extend the benefits of trade more widely, including to smaller businesses and women entrepreneurs; ensure that the opportunities created by new technologies and the digital economy are accessible to all; tackle the challenges of poverty and development; and in delivering the Sustainable Development Goals.

Furthermore, more support is needed for future members working to reform their economies and join the WTO.

The conference ended with a commitment from members to secure a deal on fisheries subsidies which delivers on Sustainable Development Goal 14.6 by the end of 2019. They also committed to improve the reporting of existing fisheries subsidy programmes.

In addition, members took a number of other ministerial decisions, including extending the practice of not imposing customs duties on electronic transmissions for another two years, and they committed to continue negotiations in all areas.

Members also agreed the following:

● Work Programme on Electronic Commerce — ministerial decision;

● TRIPS nonviolation and situation complaints — ministerial decision;

● Work Programme on Small Economies — ministerial decision;

● The creation of the working party on accession for South Sudan.

THE SYSTEM HAS HELPED TO BUILD PROSPERITY AROUND THE WORLD. IT HAS HELPED TO LIFT A BILLION PEOPLE OUT OF POVERTY