As the U.S. retreats from prior
agreements, the World Trade Organization, International Monetary Fund
and World Bank have called for an immediate reform in the multilateral
trading system.
agreements, the World Trade Organization, International Monetary Fund
and World Bank have called for an immediate reform in the multilateral
trading system.
“The urgent challenge today is to harness the unique strength of the WTO,” the bodies said in a joint report.
“The slow pace of reforms since the early
2000s, fundamental changes in a more interconnected modern economy and
the risk of trade policy reversals call for urgency to reinvigorate
trade policy reforms.”
2000s, fundamental changes in a more interconnected modern economy and
the risk of trade policy reversals call for urgency to reinvigorate
trade policy reforms.”
President Donald Trump has harshly
criticized globalism in general and questioned America’s participation
in multilateral institutions like the WTO during the United Nations
General Assembly meeting in New York.
criticized globalism in general and questioned America’s participation
in multilateral institutions like the WTO during the United Nations
General Assembly meeting in New York.
Meanwhile, fallout from the escalating U.S.-China trade conflict led the WTO to cut its trade growth forecast this week.
WTO Director-General Roberto Azevedo
warned that a full-blown trade war “would knock around 17 per cent off
global trade growth, and 1.9 per cent off GDP growth.”
warned that a full-blown trade war “would knock around 17 per cent off
global trade growth, and 1.9 per cent off GDP growth.”
The joint paper by the Washington-based groups outlined specific initiatives aimed at modernizing WTO rules.
They include a focus on increased market
access for e-commerce, more flexible negotiating structures and better
transparency of government trade policies.
access for e-commerce, more flexible negotiating structures and better
transparency of government trade policies.
The recommendations echo many goals
outlined in various WTO reform proposals offered this month by the
European Union and Canada.
outlined in various WTO reform proposals offered this month by the
European Union and Canada.
Recognizing the dire state of the WTO,
countries like Canada and the EU are preparing the groundwork to update
the organization’s 23-year-old rule book.
countries like Canada and the EU are preparing the groundwork to update
the organization’s 23-year-old rule book.
Though both China and the U.S. endorsed the need for WTO change, they have diverse views on how to do so.
The WTO, IMF and World Bank jointly
called for new rules to address the expanding role of electronic
commerce along with investment and services trade in the 21st century.
called for new rules to address the expanding role of electronic
commerce along with investment and services trade in the 21st century.
“The opportunities provided by
information technology and other fundamental changes in the global
economy are yet to be reflected in modern areas of trade policy,” the
report said.
information technology and other fundamental changes in the global
economy are yet to be reflected in modern areas of trade policy,” the
report said.
