On 3 March 2020 at an event on the future of the World Trade Organisation (WTO) an address was given by the Deputy Director General of the WTO summarising the work required to maintain and increase the benefit from the multilateral trading system.

Although there is currently an uncertain global trading environment, the multilateral trading system is still in place. Despite the imposition of additional tariffs by various countries in recent months, and the number of regional trade agreements in existence, around 80% of global trade is carried out in a non-discriminatory manner in line with the principles of the multilateral trading system.

The WTO agreements are concerned with fairness, enabling producers of goods that are marketed internationally to have a more level global playing field as a result of WTO principles and agreements. The intellectual property of innovators is generally also respected in line with those principles.

The WTO agreements cover 98% of global trade and provide an environment of certainty without which investment would be difficult. The system ensures that market forces lead to competitive outcomes.

Near term objectives

In the near time the WTO needs to make progress in curbing the fisheries subsidies that are depleting the resources in the oceans and threatening the income of coastal fishermen.

The WTO must also work to ensure that digital commerce can continue to develop without being held back by adverse government policies.

Future work for the WTO

There is however room for improvement. The world has changed since the multilateral trading system was founded in 1947 and when the WTO commenced in 1995. The rules must be updated to adapt to the widespread use of digital commerce; meet shared environmental objectives; ensure full participation of small and medium enterprises in world trade; and ensure that women are not disadvantaged in trade.

The WTO needs to recover its negotiating function and ensure a fully functional dispute resolution settlement system. The current challenging world trading environment presents opportunities to improve the system and make it easier to move products across international borders. The WTO has 164 members that must work together to achieve this.