World Trade Organisation Must Get Back To Trade

WTO achieves little because too many non-trade issues are on the agenda

- Ajay Srivastava

At the World Trade Organisation (WTO) negotiations, the key issues have included reduction in fishery subsidies, patent waivers for making a vaccine for the pandemic, food security and e-commerce. Now why does it sound like we are not reading the correct list of issues? World trade has two core components: goods and services. Both with an annual value of $28.5 trillion.

The surprising part is that the current WTO outcome does not include new rules on goods, services, or other trade-related subjects. Nor could members agree on a single multilateral agreement liberalising trade in goods or services in the past 27 years. The weak deal signed in 2013 is related to trade facilitation only.

Once upon a time GATT cut tariffs

WTO has always acted as a tool for implementing the economic priorities of developed countries. Is liberalising core subjects not their focus anymore?

The General Agreement on Tariffs and Trade (GATT), established in April 1947 with 23 members, was the beginning of the multilateral trade system. The US, EU and Japan cut their tariffs on industrial goods without seeking reciprocal cuts from other countries. They did not lose much as they produced and traded most goods among themselves.