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1 1 (May 27, 2022)

handle is hein.crs/govehgv0001 and id is 1 raw text is: Congressconal Ries arch Service inforrn§n th feilytv debate sinc. 1914 Updated May 27, 2022 The World Trade Organization The World Trade Organization (WTO) was established on January 1, 1995, following the ratification of the Uruguay Round Agreements, and today includes 164 members. It succeeded the 1947 General Agreement on Tariffs and Trade (GATT), created as part of the post-WWII effort to build a stable, open international trading system. The WTO has three basic functions: (1) administering its agreements; (2) serving as a negotiating forum for new trade liberalization and rules; and (3) providing a mechanism to settle disputes. The multiple WTO agreements cover trade in goods, services, and agriculture; remove tariff and nontariff barriers; and establish rules on government practices that directly relate to trade, e.g., trade remedies, technical barriers to trade (TBT), intellectual property rights (IPR), and government procurement. The agreements are based on the principles of nondiscrimination among countries-most-favored nation (MFN) treatment, national treatment, fair competition, and transparency of trade rules and regulations. Some exceptions are allowed, such as preferential treatment for developing countries and regional and bilateral trade agreements outside the WTO. The GATT/WTO system over time has led to a significant reduction of trade barriers, supported trade expansion and economic growth, and helped manage trade frictions. At the same time, the WTO faces serious challenges. One key concern is that the WTO is losing relevance due to its inability to adapt to the modern global economy with members' failure to negotiate a successful round of major trade liberalization since 1994 and more recently, increased measures that may violate core trade rules. Members have proposed reforms to the institution in attempts to safeguard and improve it. Recent challenges, such as the Coronavirus Disease 2019 (COVID-19) pandemic and Russia's 2022 invasion of Ukraine have caused disruptions to global trade and prompted trade-related responses by WTO members. Ministerial Conferences (MC) are generally seen as action- forcing events for the WTO. At the last MCi 1 in 2017, no major deliverables were announced, leaving the stakes high for MC12, to be held in mid-June 2022 after several delays due to COVID-19. Prospects for major decisions remain uncertain, though members have committed to make progress on issues, such as fisheries subsidies negotiations, trade responses to the pandemic, and digital trade. Congress has recognized the WTO as the foundation of the global trading system, and plays a legislative and oversight role over WTO agreements. Some members have expressed support for WTO reforms and U.S. leadership. As debates over the WTO's future intensify, several issues may be of interest to Congress, including WTO agreements' effects on the U.S. economy, outcomes of reform and negotiation efforts, and the value of U.S. membership and leadership. The Doha Round The Doha Development Agenda, the latest round of multilateral trade negotiations, was launched in 2001, but ended in stalemate, with no clear path forward (Table 1). The WTO's large and diverse membership and the single undertaking approach made consensus on the broad Doha mandate difficult. Talks were characterized by persistent differences among the United States, European Union (EU), and developing countries across major issues. Developing countries sought reduction of agriculture tariffs and subsidies by developed countries, nonreciprocal market access for manufacturing goods, and protection for services industries. Developed countries sought reciprocal trade liberalization, especially access to more advanced developing countries' industrial and services sectors, while retaining some protection for agriculture. Agriculture, where multilateral solutions arguably remain ideal, is among the thorniest issues left on the Doha agenda. In 2015, members agreed to limited deals, including on export subsidies and measures for least developed countries. Doha's lasting legacy may be the successful negotiation of the Trade Facilitation Agreement (TFA), which entered into force in 2017 and aims to remove customs obstacles and inefficiencies at the border. Table I. GATTIWTO Rounds Source: W I U. Notes: * In 2015, WTO members failed to reaffirm Doha's mandates and many observers considered the round to be effectively over. Piurlateral initiatives While multilateral efforts have progressed slowly, several plurilateral talks are underway within and around the WTO. Past agreements with U.S. membership cover key sectors and are viewed as potential models for other efforts. * Government Procurement Agreement (GPA). Provides market access for various nondefense government projects to its 48 signatories. The revised 2014 GPA expanded market access and covered entities. Information Technology Agreement (ITA). A subset of members agreed in 2015 to expand product coverage

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