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1 1 (September 29, 2022)

handle is hein.crs/goveiyq0001 and id is 1 raw text is: Congressional Research Service Infrmrnj the iegisav debdte sin.. 1.14 World Trade Organization The World Trade Organization (WTO) was established in 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 trade liberalization and rules; and (3) providing a mechanism to settle disputes. The multiple WTO agreements cover trade in goods, agriculture and services; remove tariff and nontariff barriers; and establish rules on government practices that directly relate to trade (e.g., trade remedies, technical barriers to trade, intellectual property rights (IPR), and government procurement). The agreements are based on the principles of non- discrimination-most-favored nation treatment, national treatment, fair competition, and transparency of trade rules and regulations. WTO rules allow for exceptions, such as preferential treatment and flexibilities for developing countries and 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 raised by experts is that the WTO is losing relevance due to its inability to adapt to the modern global economy. For decades, members struggled to negotiate a successful round of major trade liberalization since 1994. More recently, many have increasingly resorted to measures that may violate core trade rules. Recent challenges, such as the Coronavirus Disease 2019 (COVID-19) pandemic and Russia's 2022 war in Ukraine have disrupted global trade and supply chains and prompted trade-related responses. WTO members have proposed various 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. The Biden Administration committed to renewed U.S. support for multilateralism and WTO reform. Amid debates over the WTO's future, 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 negotiations, was launched in 2001, but ended in stalemate, with no clear path forward (Table 1). The WTO's large diverse membership and the single undertaking approach made consensus on the broad Doha mandate difficult, and these aspects continue to beset ongoing talks today. Doha was characterized by persistent differences among the United States, European Union, and Updated September 29, 2022 developing countries across major issues. Developing countries sought the 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 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 legacy may be the successful negotiation of the 2013 Trade Facilitation Agreement, which removes customs obstacles at the border. Table I. GATTIWTO Rounds Source: WTO. Note: *In 2015, WTO members failed to reaffirm Doha's mandates. MC!|2 Ministerial Conferences (MC) are generally seen as action- forcing events for the WTO. After prolonged delay, WTO members held the 12th MC in June 2022, with outcomes on several initiatives, including a limited multilateral agreement on fisheries subsidies. The agreement, subject to prolonged talks since 2001, commits to curb certain harmful subsidies. The deal was notable as the only current multilateral negotiation and the first to cover sustainability issues. Members are to continue negotiations on key issues left out of the final deal-see CRS In Focus IF11929. Other decisions include extending a moratorium on e-commerce duties and a package on WTO responses to emergencies, covering food security, a World Food Programme exemption from export prohibitions, and pandemic responses, including an IP waiver (see below). Observers viewed MC12 outcomes as boosting the WTO's credibility, while urging continued progress on outstanding critical issues, such as on agriculture, subsidies, and WTO reform. WTO leadership framed the deals as demonstrating that the

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