Executive summary

The World Trade Report 2005 begins with a brief review of salient trends in international trade, focusing firstly on recent developments and then examining medium-term developments in the oil sector and the pharmaceutical sector. Section II of WTR 2005 contains the core topic of this year’s Report, which is standards and trade in the context of the WTO. The Section looks first at the economics of standards and trade, and then at a range of institutional and policy issues. This is followed by a discussion of standards in the multilateral trading system. Section III of the Report takes up three discrete and topical issues of relevance to international trade. The three thematic essays in this Section are on the use of quantitative economics in WTO dispute settlement, trade in air transport services and offshoring services. The essay on the use of quantitative economic analysis in WTO dispute settlement procedures explains the kinds of quantitative techniques and econometric models that have been applied in various WTO legal disputes and discusses the use that was made of such analysis in a selected range of cases. The essay on trade in air transport services takes a close look at key characteristics of the industry and examines how it has evolved over time. The analysis also considers the economics of this sector, and a number of issues relating to competition, regulation, governance and trade in air transport services. Finally, the essay on offshoring services considers the economic characteristics of the activity, its scope and implications, and how it is relevant to the General Agreement on Trade in Services.