Sixty years of the multilateral trading system: achievements and challenges

Earlier Sections in this Report have sought to understand why international cooperation in trade matters seems to make sense to governments and how such cooperation translates into institutions and rules. We will now focus on the main achievements of multilateral trade cooperation over the last six decades and explore some of the core challenges and issues that the system faces today. The Section begins with a brief historical journey from the birth of the GATT to the establishment of the WTO. Subsection 2 records the efforts of governments over the years to reduce tariffs and address non-tariff measures. It also discusses briefly what can be said about the relationship between the GATT/WTO’s role in reducing and consolidating tariffs and the growth of trade. Subsection 3 analyses the evolution of dispute settlement in the GATT/ WTO, focusing on how the system has developed and performed during the last six decades. The theme of subsection 4 is developing country participation in the multilateral trading system. The subsection focuses on how developing country issues have increasingly found their way onto the multilateral agenda and the systemic challenges posed by a heterogeneous membership with divergent needs, interests and priorities. Subsection 5 addresses the phenomenon of regionalism and how the multilateral trading system has attempted to address burgeoning regional and bilateral trade policy tendencies. Subsection 6 deals with two procedural issues that have far-reaching systemic implications and go to the heart of legitimacy questions confronting the WTO. The subjects at hand are decision-making processes in the WTO and the relationship between the WTO and the outside world – specifically, non-state actors. Finally, subsection 7 explores the complex question of what can be said about how the WTO agenda is shaped and whether there exists a meaningful sense in which limits may be set to subject areas for cooperation under the WTO.