Economic research and trade policy analysis
The Role of WTO Committees through the Lens of Specific Trade Concerns Raised in the TBT Committee
In this paper we provide some evidence of the common claim that STCs improve transparency and monitoring as well as help mitigate trade conflicts.
E-commerce, Trade and the COVID-19 Pandemic
The WTO Secretariat has published a new information note looking at how the COVID-19 pandemic has affected e-commerce including the implications for cross-border trade. It notes the increased use of e-commerce as consumers adapt to lockdowns and social distancing measures and draws attention to several challenges such as the need to bridge the digital divide within and across countries.
Export Prohibitions and Restrictions
Eighty countries and customs territories so far have introduced export prohibitions or restrictions as a result of the COVID-19 pandemic according to a new report by the WTO Secretariat. The report which is based on information from official sources and news outlets draws attention to the current lack of transparency at the multilateral level and long-term risks that export restrictions pose to global supply chains and public welfare.
The Treatment of Medical Products in Regional Trade Agreements
The WTO Secretariat has published a new report on the treatment of medical products in regional trade agreements (RTAs) amid current supply shortages caused by the COVID-19 pandemic. The report examines the extent medical products are traded among preferential partners and the difference in liberalization rates within and outside these trade agreements.
Transparency — Why it Matters at Times of Crisis
For trade in goods and services to flow traders and governments need to know the rules. At no time is this more critical than at moments of crisis such as the COVID-19 pandemic. New trade measures are being taken by governments every day in response to COVID-19. If the different actors engaged in supply chains are not aware of these new requirements they can struggle to adapt to the new conditions thereby risking unnecessary disruptions. Transparency is precisely about allowing access to this information and more. It enables governments and traders to keep up to date in a rapidly evolving trade landscape and provides.
Trade in Medical Goods in the Context of Tackling COVID-19
The COVID-19 pandemic has brought considerable attention to trade in medical products and specifically trade in products for prevention testing and treatment. This study provides a comprehensive overview of trade and tariffs imposed on medical goods in general many of which appear to be in severe shortage as a result of the current crisis. The purpose of this note is to provide factual information on how these goods are traded globally.
Trade and Environment
In order to ensure transparency and to keep abreast of trade policies in support of sustainability the WTO Committee on Trade and Environment (CTE) mandated the WTO Secretariat to compile and collate all environment-related measures notified to WTO. The database also includes environment-related entries found in Trade Policy Reviews (TPRs).
An Economic Analysis of the US-China Trade Conflict
This paper provides an economic analysis of the trade conflict between the US and China providing an overview of the tariff increases a discussion of the background of the trade conflict and an analysis of the economic effects of the trade conflict based both on empirics (ex post analysis) and on simulations (ex ante analysis).
Lessons Learned and Challenges Ahead for the WTO Trade Monitoring Exercise
A little over a decade has passed since the onset of the global financial crisis in 2008. Shortly after the collapse of the Lehman Brothers investment bank an internal Secretariat Task Force was established by the WTO Director-General to monitor the trade-related developments associated with the crisis. Meeting in London in early 2009 the G20 Leaders mandated the WTO together with other international bodies to monitor and report publicly on G20 adherence to resisting protectionism and promoting global trade and investment. Since then 22 G20 reports and 24 WTO-wide reports have been published.
The Development of Trade Policies in the Asia and Pacific Region Over the Past 30 Years Since 1989
This paper reviews the main developments of trade and related policies and measures in the Asia and Pacific region during the 30 years since establishment in 1989 of the Trade Policy Review Mechanism (TPRM). The objectives of the TPRM include facilitating the smooth functioning of the multilateral trading system by enhancing the transparency of WTO Members' trade policies.
The WTO's TPR Coverage of SPS Systems in Sub-Saharan Africa
The main purpose of the paper is to present the coverage of SPS systems in SSA countries by TPR reports and their main findings. It also opens the discussion as to whether the SPS analytical framework in TPR reports has been sufficiently comprehensive and beneficial in guiding technical assistance (TPR follow-up) activities in SSA. At the outset we briefly present the strategic importance of agriculture in SSA countries with a description of the link between an effective SPS regulatory system and the performance of agriculture.
The evolution of services trade policy since the great recession
Are changes in services markets provoking reform restrictions or inertia? To address this question we draw upon a new World Bank-WTO Services Trade Policy Database (STPD) to analyse the services trade policies of 68 economies in 23 subsectors across five broad areas—financial services telecommunications distribution transportation and professional services respectively.
Gender-specific differences in geographical mobility
The gains from trade depend on the reallocation of resources including labour across firms and sectors. However workers are unlikely to be fully mobile since there are barriers to sectoral and geographical mobility due to social reasons such as family or existing private and professional networks. If these barriers depend on specific characteristics of workers such as education gender or race this has important implications for inequality.
Defining innovation-oriented government policies and their evolution in the digital age
Since the 2008-09 financial crisis industrial employment in some economies has seen accelerated decline and international competition in mature industrial sectors has tightened; the evolution of productivity and wages has slowed; and a new economy enabled by digital technologies has emerged. In this context industrial and innovation policies have undergone renewal and these “new industrial policies” are reflecting a duality inherent to all government policy phases as they aim to address the difficult modernization of traditional industries while also aiming to bring about an adaptation of economies to digitalization.
Innovation policy, trade and the digital challenge
This section focuses on innovation policy and discusses its economic rationales and impact on innovation. For innovation to take place new knowledge has to be created through investment in research and it then diffuses through the education system or publications patents and interchange of ideas. When firms or governments instigate technological progress by using this knowledge or its embodiments via inventions to change processes behaviours or technologies economic growth may be affected depending on a number of variables. Within any country the diffusion of new technology depends on institutions the level of economic openness and investment in education and research.
International cooperation on innovation policies in the digital age
National innovation policies like other government policies serve domestic policy objectives. As discussed in Section C they can generate both positive and negative international spill-over effects and some of the mechanisms through which they generate spillovers involve trade. This section focuses on cooperation aimed at addressing the trade-related international spill-overs from innovation policies. Such cooperation could help to ensure that governments have the policy space to pursue innovation policies and could help to maximize the positive international spill-overs of such policies while minimizing their negative effects on trading partners.
Foreword
In the digital age a growing number of governments have adopted policies aimed at boosting growth through innovation and technological upgrading. The domestic economic fallout linked to the COVID-19 pandemic is leading countries to strengthen these policies. This report looks at these trends and at how trade and the WTO fit in. It shows that there is a significant role for international cooperation to make countries’ pursuit of such goals more effective while minimizing negative spill-overs from national policies.
Technical notes
WTO members are frequently referred to as “countries” although some members are not countries in the usual sense of the word but are officially “customs territories”. The definition of geographical and other groupings in this report does not imply an expression of opinion by the WTO Secretariat concerning the status of any country or territory the delimitation of its frontiers nor the rights and obligations of any WTO member in respect of WTO agreements. The colours boundaries denominations and classifications in the maps of the publication do not imply on the part of the WTO any judgement on the legal or other status of any territory or any endorsement or acceptance of any boundary.
Introduction
All over the world governments are actively and openly intervening in economies to boost innovation generate new technologies and foster cutting-edge industries. These interventions can have positive or negative impacts especially in today’s hyper-connected global economy. On the one hand they can expand knowledge enhance productivity and spread the essential tools of global growth and development. But on the other hand they can also distort trade divert investment and benefit one economy at the expense of others. International cooperation and rules are needed more than ever to ensure that governments’ new focus on innovation and technology policies maximizes positive spill-overs and minimizes negative ones – and to ensure that a race for technological leadership does not morph into a struggle for technological dominance. The 2020 World Trade Report looks at the role of innovation and technology policies in an increasingly digitalized world economy and explains the role of the WTO in this changing context.
Executive summary
In the digital age a growing number of governments have adopted policies aimed at boosting growth through innovation and technological upgrading. The domestic economic fallout linked to the COVID-19 pandemic is leading countries to strengthen these policies. This report looks at those trends and at how trade and the WTO fit into them. It shows that international cooperation could play a significant role in making countries’ pursuit of such goals more effective while minimizing the negative spill-overs from national policies.