This policy brief provides strategic recommendations for the G20 to advance reform of the World Trade Organization (WTO) and strengthen the rules-based global trading system. The WTO faces mounting challenges, including stalled negotiations, a weakened dispute settlement mechanism, and governance deficiencies. These issues have been exacerbated by shifting geopolitical tensions, declining multilateral engagement, and recent shifts in US trade policy. The multilateral trading system has been in decline due to unresolved issues regarding the full restoration of the WTO dispute settlement understanding (DSU) and the failure of its legislative function: the Doha Development Agenda has not progressed and has not been succeeded by a work programme in sync with geoeconomic realities. Unresolved issues are not intractable. Businesses in all nations want orderly conduct of trade. Challenges can be tackled by proposals that address outstanding DSU issues – appeal/review procedures and access of developing countries, an increased focus on negotiations on emerging concerns, and enhanced executive functions and leadership within the organisation. Building a broad-based coalition for reform is undoubtedly challenging given the diverse interests of WTO Members. The institution needs a series of informal yet open and inclusive processes benefitting from potential solutions suggested by previous multilateral initiatives, and new suggestions that enable building of trust of the membership, particularly developing countries and Least Developed Countries, and practical suggestions that move the trade bicycle forward. The G20 with its focus on solidarity, equality and sustainability can take the lead.
This policy brief provides strategic recommendations for the G20 to advance reform of the World Trade Organization (WTO) and strengthen the rules-based global trading system. The WTO faces mounting challenges, including stalled negotiations, a weakened dispute settlement mechanism, and governance deficiencies. These issues have been exacerbated by shifting geopolitical tensions, declining multilateral engagement, and recent shifts in US trade policy. The multilateral trading system has been in decline due to unresolved issues regarding the full restoration of the WTO dispute settlement understanding (DSU) and the failure of its legislative function: the Doha Development Agenda has not progressed and has not been succeeded by a work programme in sync with geoeconomic realities. Unresolved issues are not intractable. Businesses in all nations want orderly conduct of trade. Challenges can be tackled by proposals that address outstanding DSU issues – appeal/review procedures and access of developing countries, an increased focus on negotiations on emerging concerns, and enhanced executive functions and leadership within the organisation. Building a broad-based coalition for reform is undoubtedly challenging given the diverse interests of WTO Members. The institution needs a series of informal yet open and inclusive processes benefitting from potential solutions suggested by previous multilateral initiatives, and new suggestions that enable building of trust of the membership, particularly developing countries and Least Developed Countries, and practical suggestions that move the trade bicycle forward. The G20 with its focus on solidarity, equality and sustainability can take the lead.
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