1. Has the WTO met its Objectives?
Thomas Cottier
Third Singapore-WTO Policy Dialogue on the World Trading System for Senior Government Officials from Asia and THE Pacific
"The WTO: 20 Years and Beyond"
October 19/20, 2015
World Trade Institute Berne
The National Centres of Competence in Research (CCR) are a research instrument of the Swiss National Science Foundation (SNSF)

2. WTO Agreement, Preamble
The Parties to this Agreement,
Recognizing that their relations in the field of trade and economic endeavour should be conducted with a view to raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand, and expanding the production of and trade in goods and services, while allowing for the optimal use of the world's resources in accordance with the objective of sustainable development, seeking both to protect and preserve the environment and to enhance the means for doing so in a manner consistent with their respective needs and concerns at different levels of economic development, …
World Trade Institute Berne

3. Perceptions and Realities
Doha Development Agenda stalling
Forum Shifting to multilateral PTA in particular TTP, TTIP and RCEP
Multipolar World
WTO and multilateralism increasingly perceived irrelevant in public discourse and media
No major protectionism during and after Financial and Debt Crisis
New Members
Central Role of WTO Dispute Settlement
WTO Law is the Foundation of all modern RTAs
World Trade Institute Berne

4. The WTO Legal Acquis
Fundamental principles of non-discrimination (MFN and National Treatment) and transparency
WTO law grew since 1947 and comprises some 20 full Agreements, 7 Understandings and numerous decisions, and tariff and services schedules of Members: A substantial codex
The case law of Panels and the Appellate Body relates to almost 500 disputes filed since 1995 (October 2015)
Towards universal Membership: from 128 to 161 in October 2015, with 22 acceding States
World Trade Institute Berne
World Trade Institute Berne 4

5. The Impact of WTO law
WTO law provides the legal framework and legal security for millions of transactions every day around the World
WTO law and the potential of retaliation played a major role in curbing economic protectionism following the financial crisis and the current European debt crisis
WTO law allowed for increasing trade shares of developing countries (legitimacy), but not LLDCs
World Trade Institute Berne
World Trade Institute Berne 5

6. Agreements at Issue in Dispute Settlement
World Trade Institute Berne

7. World Trade Institute Berne
Main Assets
Principles and Rules of WTO Law
Administration of Agreements
Partial revisions of Agreements (TRIPs, GPA) completed
New Agreement on Trade Facilitation
Dispute Settlement:
two-tier system
better balance of different policy goals in case law
high levels of compliance
TPRM: Transparency and Dialogue
Technical Cooperation and Support: Training and Trade Facilitation
Geneva Policy Dialogue with Trade Community and NGOs (WTO Forum and beyond)
World Trade Institute Berne

8. Doha Development Agenda: State of Play
Negotiations stalling mainly due to the NAMA and services talks, not due to complex regulatory fields
Multiple Causes:
DDA a political agenda post Sept 9/2001
Lack of pressure from private sector due to Uruguay Round results and relatively open markets
Accession of PR China in 2001
Emerging economies and a multipolar World
Shifting functions of MFN
Failure to monitor legal compliance of RTAs
Major shift to Preferential Trade Agreements in recent years
World Trade Institute Berne
World Trade Institute Berne 8

9. World Trade Institute Berne
World Trade Institute Berne

10. Dialectical Relationship
Multilateralism and Preferentialism mutually supportive over time:
1883 and 1886 IPR Conventions (Paris and Berne) based upon set of bilateral agreements
GATT 1947 based upon US Reciprocal Trade Agreements
Preferential Trade in Services based upon 1995 GATS Agreement (PTAs, TISA Negotiations)
TTP/TTIP/RCEP: Future Multilateralization in WTO to be expected ( )
World Trade Institute Berne

11. Tariff reductions in the industrial sector (developed countries)
World Trade Institute Berne

12. De jure and facto MFN Effects of PTA Regulation
Operation of differential tariff rates and quantitative limitations to goods and services markets in PTAs possible and effective in creating production networks
Difficult to operate differential standards in regulation, e.g. TBT, SBS, IPRs, subsidies, investment, domestic regulation of services, competition rules, labour standards in PTAs
WTO plus elements inherently deploy de facto or de jure MFN effects and free-riding for other WTO Members
World Trade Institute Berne
World Trade Institute Berne 12

13. WTO World Trade Report 2011 p. 72
“Trade between PTA members is growing as the number of agreements increase. About one half of world trade now takes place among PTA members. However, examining total trade flows between PTA partners overstates the amount of trade that takes place on a preferential basis. This is partly because tariff schedules of many PTA members increasingly contain duty-free MFN rates on which no further tariff reduction can be given. Hence, while the number of PTAs has been increasing, the importance of preferential trade has not kept pace. This development reflects a substantial reduction in MFN tariffs during the past two decades, either through multilateral trade negotiations or unilateral reductions.”
WTO World Trade Report 2011 p. 72
World Trade Institute Berne
World Trade Institute Berne 13

14. The Common Law of International Trade
RTAs all structured on the basis of WTO law disciplines
Shared values and principles
Core legal concepts of tariffs, QRs, non-discrimination (national treatment) and exceptions
Structure of agreements follow WTO Law
WTO-plus and sometimes WTO-minus
World Trade Institute Berne

15. Conclusion: A Mixed Record
WTO firmly established as anchor and (understated) foundation of a balanced international trading system
Market access shift to PTA:
trade diversion due to differential tariffs
spill-over effects in NTBs
largely excluding LLDCs in promoting growth and welfare
World Trade Institute Berne

16. World Trade Institute Berne
Thank you for your attention The Common Law of International Trade and the Future of the WTO, 18 Journal of International Economic Law 3-20 (2015)
World Trade Institute Berne