The Hill’s Congress blog: Fresh ideas for modernizing global trade rules

By Jake Colvin, vice president, National Foreign Trade Council

Congress may be gridlocked on a number of issues, but the World Trade Organization (WTO) is positively stuck when it comes to advancing global trade liberalization. Today, the National Foreign Trade Council proposed a way to get beyond the diplomatic logjam that has plagued negotiations for a Doha Development Round in a new paper, “A 21st Century work program for the global trading system.”

Acceptance is the first step to recovery, and in the case of ongoing WTO negotiations, it is past time to admit that there is a problem. Trade Ministers acknowledged the Doha negotiations were at an impasse in Geneva last December at a WTO ministerial conference, leaving the door open to fresh ideas for advancing broad-based efforts to open markets and modernize trade rules.

Several key priorities should shape the multilateral trade agenda in the near term. They include the swift conclusion of a trade facilitation agreement, to address bottlenecks behind the border that impede business, and the pursuit of negotiations with a group of countries towards a broad agreement on services, which is an area of strong growth in the United States and around the world. The WTO should also more directly tackle emerging global challenges such as mitigating and adapting to climate change, improving global health outcomes, and optimizing the digital economy by aggressively pursuing trade-related solutions.

While such an approach would not address tariff barriers in a comprehensive fashion, it would demonstrate progress on issues that matter to businesses, workers and entire economies. There is great value in reducing the cost of shipping products around the world, modernizing rules to improve the electronic delivery of information across borders, and lowering barriers to fast-growing services trade. The Peterson Institute estimates that an ambitious agreement on trade facilitation measures alone could provide positive global GDP gains of hundreds of billions of dollars when fully implemented.

Progress on these issues will require a more flexible approach than countries have pursued for the past decade. Negotiators will have to work on a series of discrete issues through new processes that limit the ability of individual countries to thwart progress.

Given the difficulty in obtaining unanimous agreement on how to proceed with trade liberalization, NFTC asked for some advice as to what can be accomplished legally under WTO rules by a coalition of countries. Ambassador Harbinson and Bart De Meester of Sidley Austin prepared a detailed analysis of coalition-based approaches to agreements that would be consistent with current trade rules. They indicate there is wide latitude for negotiating new commitments on market access and rules across goods, services and intellectual property disciplines and provide a useful road map for countries seeking to negotiate new deals.

The WTO is a valuable institution. It generally functions well as a body to enforce existing rules and settle disputes, and has been rightly credited for helping to stave off large-scale protectionism during the economic crisis. Its utility as a forum for trade negotiations has taken a hit in recent years, however, and member countries need to more firmly establish its place as the premier forum for opening markets and modernizing trade rules. It is time for countries to pursue new ideas and pathways for advancing an ambitious multilateral agenda that will support broad-based economic growth, development and jobs.

It's only fair to share...Share on Facebook
Tweet about this on Twitter
By | 2017-10-08T11:56:25+01:00 February 9th, 2012|News|Comments Off on The Hill’s Congress blog: Fresh ideas for modernizing global trade rules

About the Author: