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1 1 (January 21, 2022)

handle is hein.crs/govehgw0001 and id is 1 raw text is: Congressional Research Servi inkirrning the iegislative debdte sinco 1914 The World Trade Organization Overview 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 existing 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-for example, 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, such as preferential treatment for developing countries and regional and bilateral trade agreements outside the WTO, are allowed. 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 fundamental concern is that the WTO could lose relevance due to its inability to adapt to the modern global economy by its members' failure to negotiate a successful round of major trade liberalization since 1994. Several members have proposed reforms to the institution in attempts to safeguard and improve it. 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; others introduced joint resolutions in 2020 to withdraw congressional approval of WTO agreements. 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. The negotiations were characterized by persistent differences among the United States, European Union (EU), and developing countries on major issues, such as agriculture, industrial tariffs and nontariff barriers, services, and trade remedies. Developing countries sought the reduction of agriculture tariffs and subsidies by Updated January 21, 2022 developed countries, nonreciprocal market access for manufacturing sectors, and protection for services industries. In contrast, developed countries sought reciprocal trade liberalization, especially commercially meaningful access to more advanced developing countries' industrial and services sectors, while retaining some protection for their own agricultural sectors. Agriculture, where multilateral solutions arguably remain ideal, continues to be among the thorniest issues on the agenda left over from Doha. In 2015, members agreed to limited deals, including on phasing out export subsidies, minimizing impacts of food aid on local markets, and several measures for least developed countries. The lasting legacy of Doha may be the successful negotiation of the Trade Facilitation Agreement (TFA), which entered into force in early 2017 and aims to remove customs obstacles and inefficiencies at the border. Table I. GATTIWTO Rounds source: vv i u. Notes: * In 2015, WTO members failed to reaffirm Doha's mandates and many observers considered the round to be effectively over. 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. Due to the Coronavirus Disease 2019 (COVID- 19) pandemic, the WTO postponed MC12, now scheduled for March 2022. In advance, some members want a virtual ministerial meeting to clarify political guidance on particular issues. Members have committed to make significant progress on certain topics, including on multilateral fisheries subsidies negotiations, health and trade, and digital trade. PlurilateraI Initiatives While multilateral efforts have progressed slowly, several plurilateral talks are underway within and around the WTO.

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