A blog post on 10 January 2022 from the WTO Deputy Director General Ms Gonzalez looked at five important tasks for the WTO in 2022.
Response to the pandemic
The WTO members need to deliver a trade and health response to the pandemic, in view of the importance of trade in medical products. The WTO needs to put in place a framework to facilitate trade in vaccines, medical equipment and the supplies required to produce them.
Role of trade rules in environmental issues
The role of trade rules in supporting environmental objectives must be strengthened. Trade rules need to be strong in the areas of environmental goods and services; the sustainable plastics trade; fossil fuel subsidies and other areas. The WTO must work to promote international negotiations in these areas. The environment would also benefit from a successful conclusion to the negotiation of an agreement to cut harmful subsidies in fisheries.
Investment facilitation for development
More than the two thirds of the WTO member countries are taking part in the negotiations on investment facilitation for development. These aim to help countries improve their business climate and create an environment where investors are better able to make investments and manage and expand their business operations. If the negotiations are concluded successfully this could give a boost to foreign investment in supporting a strong and sustainable global recovery after the pandemic.
Progress in the multilateral negotiations on e-commerce could facilitate participation in international trade for small and medium businesses in all countries, by reducing their trade costs. Small and medium businesses could participate more easily in global trade if they are dealing with a single set of rules rather than a variety of different regulations in different places.
Subsidies and state intervention
Government subsidies and other forms of support can distort international markets, especially if there is limited transparency. This can reduce opportunities for innovation, competition and higher productivity. If the WTO rules on subsidies and state intervention in the economy are updated this could contribute to reducing trade uncertainty and friction, which in turn could help to reduce international tensions. This applies to the industrial sector but also to agriculture. In 2022 WTO member countries must pursue discussions with a view to revising the trade rules in relation to subsidies and other harmful state interventions.
Dispute resolution
Rule-making cannot succeed without a fully functioning dispute settlement system. WTO members therefore need to restore a binding mechanism for resolving trade conflicts among the WTO member countries. The WTO’s dispute settlement system has generally been helpful in settling many trade conflicts and most of the time governments have complied with rulings. During 2022 the member countries may need to look at what changes are needed to the dispute settlement procedure and engage in dialogue on improving the system.
