WTO REFORM Uri Dadush Carnegie Endowment for International Peace September 15, 2009.

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Presentation transcript:

WTO REFORM Uri Dadush Carnegie Endowment for International Peace September 15, 2009

WTO Reform: Time to Start is Now WTO is an essential plank of globalization But has become sidelined on liberalization Needed: a more flexible approach to negotiations Reform process should start with coming Ministerial in Geneva

WTO, an essential plank of globalization Some 370 disputes filed Accession of China and 24 other countries Agreements on Telecommunications and Financial Services Aid for Trade

Sidelined on Liberalization Source: IMF, World Economic Outlook, April 2009

Why so difficult?: Combination of Factors Tougher issues (agriculture) Increased complexity (services) More numerous and diverse participants Increased influence of large players (India, Brazil) Increased influence of groups (LDCs) Single Undertaking and Consensus Rule

Reform Agenda Outline 1: Towards Plurilaterals On single issues or small number of linked issues Criteria for minimizing adverse effects on non- members Preferential treatment for poorest countries Criteria for accession of non-members Subject to dispute settlement

Reform Outline 2: Harness RTAs Dont frown on (or fight!) all RTAs, but promote well designed ones Well designed RTAs have low external barriers, simple and liberal rules of origin, and are broad and deep in their coverage

Reform Outline 3: Assist members design own trade reforms Runs counter to mercantilist ethos of trade negotiators, yet…. Most trade reform is autonomous WB and IMF regularly engaged in advising countries without old fashioned conditionality Can be done while retaining some negotiating chips (bindings) Trade Policy Reviews a good instrument

Reform Outline 4: Opportunistic Multilateralization Recognize that current multilateral agreements are rife with exceptions Extend flexible geometries (plurilateral and regional) Take modest steps to bind pre-existing liberalization Bind in specific sectors

WTO Reform: Time to Start is Now WTO is an essential plank of globalization But has become sidelined on liberalization Needed: a more flexible approach to negotiations Reform process should start with coming Ministerial in Geneva