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1 1 (February 12, 2025)

handle is hein.crs/goveslt0001 and id is 1 raw text is: I rinin Updated February 12, 2025 World Trade Organization The World Trade Organization (WTO) is an international organization established in 1995 following the ratification of the Uruguay Round Agreements, and today includes 166 members. It succeeded the 1947 General Agreement on Tariffs and Trade (GATT), created as part of the U.S. and Europe-led post-World War II effort to build a stable, open global trading system. The WTO's basic functions include: administering its trade agreements; serving as a negotiating forum for trade liberalization and rules; and providing a dispute settlement (DS) process to resolve disputes. WTO agreements cover trade in goods, agriculture and services; remove tariff and nontariff barriers; and establish rules on government practices relating to trade (e.g., trade remedies, technical barriers to trade (TBT), intellectual property rights (IPR), government procurement). The agreements are based on the core principles of nondiscrimination-most-favored nation (MFN) and national treatment, fair competition, and transparency. WTO rules also allow for exceptions, such as preferential treatment/flexibilities for developing countries. 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 of WTO members and observers is that the WTO is losing relevance due to its inability to adapt to the modern global economy. For decades, members have struggled to negotiate a successful round of major trade liberalization since 1994. In recent years, many have increasingly resorted to measures that may violate core trade rules. Moreover, challenges, such as the COVID-19 pandemic and Russia's war in Ukraine, have disrupted global trade and supply chains and prompted trade-related responses. WTO members are considering various reforms to the institution in attempts to safeguard and improve it. In statute, Congress has recognized the WTO as the foundation of the global trading system and has a legislative and oversight role over WTO agreements. Some Members have expressed support for WTO reforms, new rules, and U.S. leadership (e.g., 118th Cong., S.Res. 202, S. 446). The Trump Administration has expressed skepticism toward the WTO and criticized the lack of reciprocity in WTO members' trade concessions. Amid debate over the WTO's future, key issues facing Congress include the effect of WTO agreements on the U.S. economy, outcomes of reform and negotiation efforts, and the value of U.S. membership and leadership in the WTO. The Doha Round The Doha Development Agenda, the most recent round of multilateral WTO negotiations, was launched in 2001, but ended in stalemate in 2015 with no clear path forward (Table 1). The WTO's diverse membership and the single undertaking approach (i.e., nothing is agreed until everything is agreed) made consensus on the broad Doha mandate difficult. These aspects continue to beset WTO talks today. Doha was generally characterized by persistent differences among developed and developing country members across major issues, including market access. Agriculture, where multilateral solutions arguably remain ideal, is among the thorniest issues left on the Doha agenda-see CRS In Focus IF11906. Doha's legacy may be the successful negotiation of the 2013 Trade Facilitation Agreement, which removes customs obstacles at the border. Tnkla I ATrr1W rn...,IAc Source: UKS based on the WI U. Note: *In 2015, WTO members failed to reaffirm Doha's mandates. Mnnstea Conference Prospects The Ministerial Conference (MC) is the WTO's top decision-making body, and the MC biennial meeting is generally seen as an action-forcing event. WTO members held their latest ministerial (MC13) in February 2024, with the next scheduled for March 2026. Members did not announce major outcomes, but sought to take stock of progress and build on achievements reached in 2022 at MC12, which many observers had viewed as boosting the WTO's credibility. MC12 outcomes included a limited multilateral agreement on fisheries subsidies, which commits members to curb certain harmful subsidies. The deal, which was subject to prolonged talks since 2001, was notable as the only current multilateral negotiation within the WTO and first to cover sustainability issues. WTO members have continued talks on key issues left out of the deal-see CRS In Focus IF11929. Other MC12 decisions involved WTO responses to emergencies, food security, and IP-related pandemic responses. In 2024 at MC13, after overcoming opposition of India and some others, WTO members agreed to extend a moratorium on e-commerce duties until 2026. Members also sought to clarify roadmaps toward WTO reform, including on DS, and bridge persistent differences in agriculture and in the second phase of fisheries talks, which ultimately failed to sion I Research Serv A ovIat~v debdtes~ncAH4

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