On 4 June 2019 the World Trade Organisation (WTO) published its annual report covering developments in 2018 and early 2019.

The period was characterised by growing trade tension and economic uncertainty. A deceleration in economic activity led to slower trade globally. The growth of mercantile trade was 3% in 2018 compared to 4.6% in 2017 and is expected to decrease further in 2019 to 2.6%. To reverse this trend it will be necessary to find a solution to the trade tensions and allow trade to drive further economic growth.

Strengthening the world trading system

The WTO member countries are continuing to discuss ways of further strengthening the global trading system to adapt it to changes in the global economy such as the fast technological changes and the changes in the nature of work. In December 2018 the G20 leaders stressed the need to reform the global trading system.

Improving the functioning of the WTO

There is a need to improve the level of compliance by WTO member countries with their obligations to submit information on trade policies and practices. More effective methods are required to deal with trade-distorting practices including subsidies and quotas. Improvements are also needed in the functioning of the WTO’s dispute settlement system. WTO members are currently submitting proposals to overcome the impasse in the appointment of members of the WTO’s Appellate Body which hears appeals.

Improving trade negotiations

WTO member countries are also discussing how to improve the process of trade negotiations at the WTO. There have recently been successful negotiations resulting in the Trade Facilitation Agreement, the abolition of agricultural export subsidies, the broadening of the Information Technology Agreement; food security problems; and issues concerning the least-developed countries (LDCs). However some discussions have not moved forward and an improved system of negotiations is therefore needed.

Agriculture and fisheries

Negotiations on various issues moved forward in 2018 including agriculture and fisheries subsidies. Member countries have discussed possible issues in agriculture where agreement could be reached in time for the Ministerial Conference in Kazakhstan in June 2020. Discussions have covered domestic subsidies; public stockholding for food security purposes; issues around cotton; and market access. Each of these areas is covered by a thematic working group within the WTO and there is a detailed work programme for 2019. WTO members are aiming to reach an agreement on fisheries subsidies by the end of 2019, reducing subsidies that lead to overfishing and eliminating subsidies that lead to illegal and unregulated fishing.

Joint Initiatives

The issues being discussed by WTO members as joint initiatives include small and medium enterprises (SMEs), electronic commerce, facilitation of investment and the economic empowerment of women.