WTO remains vital despite criticisms
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Introduction
What came to be known as the “greatest trade agreement in history” was signed in Marrakesh, Morocco, 29 years ago on Saturday during a gathering of representatives from more than 120 countries. The Marrakesh Agreement led to the creation of the World Trade Organization, whose membership has now grown to 164 states and organizations. For 2023-2024, the World Trade Organization General Council has selected Saudi Arabia’s Ambassador to the WTO Saqer Abdullah Almoqbel to chair its Trade Policy Review Body.
Background
It took a significant amount of political capital to establish the WTO, which is considered to be the largest international economic body in the world. It is the successor to the General Agreement on Tariffs and Trade, which was founded after the Second World War by a multilateral treaty signed by 23 countries in order to enhance economic cooperation between nations.
Several rounds of negotiations, including the Kennedy and Tokyo Rounds, led to agreements on reducing tariffs and removing non-tariff barriers. Due to globalization, the Uruguay Round of negotiations between 1986 and 1994 expanded the trading system to include other areas, such as intellectual property rights and trade in services. This led to the Marrakesh Agreement and the establishment of the WTO.
Sustainable Development Goals (SDGs)
“The agreements you will sign here this week mean opportunities to expand trade, economic growth and employment,” said Peter Sutherland, the last GATT director-general and the first WTO director-general, at the opening of the Marrakesh meeting. “They mean opportunities to promote sustainable development. And they also mean an opportunity — the most significant one we have had for 50 years — to build a new basis for global economic cooperation.”
Trade Facilitation Agreement
Nearly 20 years after its establishment, the first multilateral agreement was reached in 2013 — the Trade Facilitation Agreement, which aimed to lower the cost of international trade. The WTO estimated that this would add more than half a percentage point to annual global gross domestic product. It stated: “Computable general equilibrium simulations predict export gains from the TFA of between $750 billion and well over $1 trillion dollars per annum, depending on the implementation time frame and coverage. Over the 2015-30 horizon, implementation of the TFA will add around 2.7 percent per year to world export growth and more than half a per cent per year to world GDP growth.”
Importance of Multilateral Agreements
Dr. Majid Rafizadeh
Challenges and Solutions
One of the criticisms of the WTO is linked to the length of time that is often required to reach a major multilateral agreement. But this is partially due to the fact there are 164 members and it is natural that reaching a consensus — with each member having different economic goals and objectives — would be inherently difficult. Unlike the UN Security Council, whose five permanent members (the US, Russia, China, the UK and France) can vote to pass a resolution, the agreement of two-thirds of WTO members is required to ratify a multilateral agreement.
On the other hand, when a multilateral agreement is reached at the WTO, it is more likely to be effective in its enforcement and implementation, and it is more likely to be a firm and durable agreement because it was accepted by all of its members, rather than being imposed by a few powerful states.
One solution that could enhance the functionality of the WTO would be to encourage plurilateral agreements, which are reached by fewer members. These are agreements that do not require ratification from non-signatory members. They are also more specific in nature. What usually happens after such agreements are reached is that other member states subsequently begin to join.
For example, the Information Technology Agreement, which aims to reduce taxes and tariffs on information technology products, was first concluded by only 29 participants at the 1996 Singapore Ministerial Conference. But the number of participants has since grown to 82, accounting for more than 95 percent of global trade in IT products. According to a 2017 study in the World Trade Review, the Information Technology Agreement and its expansion was “the most successful attempt at trade liberalization under the auspices of the WTO since its inception in 1995.”
Dispute Resolution
Finally, the role that the WTO plays in resolving disputes should not
SDGs, Targets, and Indicators
-
SDG 8: Decent Work and Economic Growth
- Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
- Indicator: Gross domestic product (GDP) growth rate
-
SDG 17: Partnerships for the Goals
- Target 17.10: Promote a universal, rules-based, open, non-discriminatory, and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda.
- Indicator: Number of countries implementing trade facilitation and reducing trade barriers
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries. | Gross domestic product (GDP) growth rate |
| SDG 17: Partnerships for the Goals | Target 17.10: Promote a universal, rules-based, open, non-discriminatory, and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda. | Number of countries implementing trade facilitation and reducing trade barriers |
Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
The SDGs addressed or connected to the issues highlighted in the article are SDG 8: Decent Work and Economic Growth and SDG 17: Partnerships for the Goals.
2. What specific targets under those SDGs can be identified based on the article’s content?
Based on the article’s content, the specific targets identified are:
– Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
– Target 17.10: Promote a universal, rules-based, open, non-discriminatory, and equitable multilateral trading system under the World Trade Organization, including through the conclusion of negotiations under its Doha Development Agenda.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets. The indicators are:
– Indicator: Gross domestic product (GDP) growth rate (for Target 8.1)
– Indicator: Number of countries implementing trade facilitation and reducing trade barriers (for Target 17.10)
The article mentions the importance of sustaining economic growth and increasing GDP (Target 8.1) and the need to promote a rules-based and open multilateral trading system under the World Trade Organization (Target 17.10). These targets can be measured using the indicators mentioned.
By analyzing the article, we can see that it discusses the establishment of the World Trade Organization (WTO) and its role in facilitating global trade and resolving trade disputes. It also highlights the benefits of international trade for economic growth and GDP. These align with SDG 8, which focuses on promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
Additionally, the article mentions the need for a universal, rules-based, open, non-discriminatory, and equitable multilateral trading system under the WTO. This connects to SDG 17, which emphasizes the importance of partnerships for the goals and the promotion of a global partnership for sustainable development.
The specific targets identified based on the article’s content are Target 8.1, which aims to sustain per capita economic growth, and Target 17.10, which focuses on promoting a universal and equitable multilateral trading system. These targets reflect the goals of SDG 8 and SDG 17, respectively.
The article mentions indicators that can be used to measure progress towards these targets. The indicator for Target 8.1 is the gross domestic product (GDP) growth rate, which can be used to assess the economic growth of countries. The indicator for Target 17.10 is the number of countries implementing trade facilitation and reducing trade barriers, which can be used to evaluate the progress in achieving a rules-based and open multilateral trading system.
In summary, the article addresses SDGs 8 and 17, specifically targeting economic growth and multilateral trading systems. The targets identified are Target 8.1 and Target 17.10, and the indicators mentioned are GDP growth rate and the number of countries implementing trade facilitation and reducing trade barriers.
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: arabnews.com
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