link to page 1

Updated September 25, 2020
The World Trade Organization
Overview
approach made consensus on the broad Doha mandate
The World Trade Organization (WTO) was established on
difficult. The negotiations were characterized by persistent
January 1, 1995, following the ratification of the Uruguay
differences among the United States, European Union (EU),
Round Agreements, and today includes 164 members. It
and developing countries on major issues, such as
succeeded the 1947 General Agreement on Tariffs and
agriculture, industrial tariffs and nontariff barriers, services,
Trade (GATT), created as part of the post-WWII effort to
and trade remedies. Developing countries sought the
build a stable, open international trading system. The WTO
reduction of agriculture tariffs and subsidies by developed
has three basic functions: (1) administering existing
countries, nonreciprocal market access for manufacturing
agreements; (2) serving as a negotiating forum for new
sectors, and protection for services industries. In contrast,
trade liberalization and rules; and (3) providing a
developed countries sought reciprocal trade liberalization,
mechanism to settle disputes. The multiple WTO
especially commercially meaningful access to advanced
agreements cover trade in goods, services, and agriculture;
developing countries’ industrial and services sectors, while
remove tariff and nontariff barriers; and establish rules on
retaining some protection for their own agricultural sectors.
government practices that directly relate to trade—for
Agriculture, where multilateral solutions arguably remain
example, trade remedies, technical barriers to trade (TBT),
ideal, remains among the thorniest issues on the agenda
intellectual property rights (IPR), and government
leftover from Doha. In 2015, members agreed to limited
procurement (Table 1). The agreements are based on the
deals, including on phasing out export subsidies,
principles of nondiscrimination among countries—most-
minimizing impacts of food aid on local markets, and
favored nation (MFN) treatment, national treatment, fair
several measures for least developed countries.
competition, and transparency of trade rules and
regulations. Some exceptions, however, such as preferential
The lasting legacy of Doha may be the successful
treatment for developing countries and regional and
negotiation of the Trade Facilitation Agreement (TFA),
bilateral trade agreements outside the WTO, are allowed.
which entered into force in early 2017 and aims to remove
customs obstacles and inefficiencies at the border.
The GATT/WTO system over time has led to a significant
reduction of trade barriers, supported trade expansion and
At the most recent WTO Ministerial Conference in 2017,
economic growth, and helped manage trade frictions. At the
no major deliverables were announced, leaving the stakes
same time, the WTO faces serious challenges, some long-
high for the next meeting. In 2020, members were forced to
standing and some emerging more recently. One
postpone the 12th Ministerial (MC12) to 2021 due to the
fundamental concern is that the WTO could lose relevance
Coronavirus Disease 2019 (COVID-19) pandemic. MC12
due to its inability to adapt to the modern global economy
was widely anticipated as an action-forcing event for the
by its failure to negotiate a successful round of major trade
WTO. Members have committed to make significant
liberalization since 1994. This and other concerns have led
progress on ongoing talks, including on fisheries subsidies,
several members to propose reforms to the institution in
and advancing e-commerce and other areas.
attempts to safeguard and improve it. In 2020, members
Table 1. GATT/WTO Rounds
also face selecting a new Director-General (DG) to usher
the trading system through these challenges, following DG
Year Name Subjects covered
Countries
Roberto Azevêdo’s early resignation in August.
1947- Geneva, 5 rounds of tariff reductions
23 (1947);
Congress has recognized the WTO as the “foundation of the
1961 Annecy,
26 (1961)
global trading system” within U.S. trade statutes and plays
Torquay,
a legislative and oversight role over WTO agreements.
Geneva
II, Dil on
Some Members have expressed support for WTO reform
efforts and U.S. leadership; while others have introduced
1964- Kennedy Tariffs and antidumping measures
62
joint resolutions to withdraw congressional approval of
1967
WTO agreements. As debates over the WTO’s future
1973- Tokyo
Tariffs, antidumping, subsidies, TBT,
102
intensify, several issues may be of interest to Congress,
1979
government procurement
including WTO agreements’ effects on the U.S. economy,
the outcomes of ongoing reform and negotiation efforts,
1986- Uruguay Tariffs, nontariff measures, rules,
123
1994
services, IPR, dispute settlement,
and the value of U.S. membership and leadership.
textiles, agriculture, WTO institution
The Doha Round
2001- Doha
Tariffs, nontariff measures, agriculture, 142 (2001);
2015*
services, trade facilitation, trade
164
The Doha Development Agenda, the latest “round” of
remedies, and development
(current)
multilateral trade negotiations, was launched in 2001 but
ended in stalemate, with no clear path forward. The WTO’s
Source: WTO.
large and diverse membership and the “single undertaking”
https://crsreports.congress.gov

---

link to page 2 The World Trade Organization
Notes: *At the 2015 Ministerial, WTO members acknowledged
resulted in widespread trade protectionism. The WTO has
divisions over reaffirming Doha’s mandates. As a result, many
committed to work to minimize disruptions to trade, and
observers considered the round to be effectively over.
encouraged WTO members to notify new trade measures.
Plurilateral Initiatives
At the same time, many countries have reaffirmed the
trading system, lifted restrictions, and view the WTO as
While multilateral efforts have progressed slowly, several
playing an important role in tackling trade policy challenges
plurilateral talks are underway within and around the WTO.
that have emerged from the pandemic. Some members have
Past agreements with U.S. membership cover key sectors
advocated for a plurilateral agreement on medical goods.
and are viewed as successful models for other efforts.
ï‚·
WTO reform. USTR has indicated interest in institutional
Government Procurement Agreement (GPA). The
reform of the WTO in major areas: (1) addressing
GPA provides market access for various nondefense
“unanticipated challenges of non-market economies”; (2)
government projects to its signatories. In force since
ensuring respect in DS rulings for members’ “sovereign
April 2014, the revised GPA expanded market access
policy choices”; (3) compelling members to adhere to WTO
and covered entities, and currently has 48 members.
ï‚·
notification obligations; and (4) reassessing the treatment of
Information Technology Agreement (ITA). A subset
“developing country status” that grants some members
of members agreed in 2015 to expand product coverage
flexibilities in WTO commitments. Some U.S. frustrations
for tariff-free treatment in the 1996 ITA. The updated
are not new and are shared by other members, but
ITA is to eliminate tariffs over seven years on 201
approaches to solutions differ. Several WTO members have
additional goods. Tariff reductions or elimination are
submitted proposals on these issues now under debate.
applied on a MFN basis to all WTO members.
Dispute Settlement. To supporters, the DS system is
An ongoing plurilateral initiative of U.S. interest is the e-
considered a WTO success. The United States has been an
commerce negotiations, launched in March 2019 by 75
active user of the system (Table 2). However, some are
members. The United States seeks a high ambition for these
concerned about the DS system’s continued legitimacy
talks, including disciplines on cross-border data flows and
absent reforms and if no new WTO agreements are reached,
bans on data localization and forced technology transfer.
thus preventing new trade issues from being adjudicated.
Other plurilateral talks are currently stalled, related to
services and environmental goods. Some raise concerns that
Table 2. WTO Dispute Settlement
plurilateral approaches, while useful, could potentially
Total cases filed—all parties
596
marginalize other non-participating countries or allow for
free riders who benefit from others’
U.S. as Complainant
124
commitments.
Ongoing Challenges
U.S. as Respondent
155
U.S. as Third Party
161
Since the Doha Round, intractable issues and active debate
Source: WTO, as of September 2020.
confront the WTO. Many members and observers concur
that the WTO must adopt reforms to remain an effective
The Trump Administration voiced major concerns with DS,
institution, in terms of its negotiating, monitoring, and
including what it considers “judicial overreach” in panel
dispute settlement (DS) functions. In the near term, some
decisions, which, in effect, may create new obligations not
members have also called on the WTO to address the trade
specifically negotiated, especially in the area of trade
policy challenges that emerged from COVID-19.
remedies. To spur reform, the United States has blocked
Negotiating Agenda. Some issues on the Doha agenda,
appointment of new jurists to the seven-member Appellate
ideally negotiated multilaterally, remain contentious and
Body (AB), which reviews appeals of dispute cases. As a
may founder for want of a negotiating venue: for example,
result, the AB ceased to function in December 2019. While
attempts to discipline agricultural subsidies or resolve
the EU and others have proposed reforms to address U.S.
concerns on public stockholding programs. In addition,
concerns, thus far, they have been rejected by the United
since 1995, new trade barriers, technology advances, and
States. A key question is the impact of the AB’s absence on
other issues have emerged. Developed countries have
the effective enforcement of WTO rules moving forward.
sought to incorporate issues on the agenda, such as digital
Unilateral Enforcement Actions. Many observers are also
trade and state-owned enterprises that pose challenges to
concerned that U.S. tariffs and counter-tariffs by other
the trading system. Some, including the United States, point
countries, as well as escalating trade disputes are further
to plurilaterals as the way forward to address new issues.
straining the WTO. Several related WTO disputes are
More broadly, the United States contends that WTO rules
pending DS decisions. Observers express concern that
were not designed to effectively handle the challenges of
unilateral tariffs, some pursued in the name of national or
emerging markets like China that many experts view as not
economic security, may undermine the credibility of the
full-fledged market economies. To this end, the U.S., EU,
WTO and its key rules and principles, and lead to ongoing
and Japan are engaged in discussions to strengthen rules on
new trade restrictions. While WTO agreements offer ample
subsidies and other issues raised by non-market economies
flexibility for temporary measures justified by national
where the state plays a major role.
security or health crises, the spread of export restrictions
following COVID-19 have further amplified such concerns.
COVID-19. WTO members face challenges in responding
to the global trade and economic slowdown from COVID-
Cathleen D. Cimino-Isaacs, Analyst in International Trade
19. The pandemic has tested cooperation and coordination
and Finance
in global trade policies, disrupted global supply chains, and
https://crsreports.congress.gov

---

The World Trade Organization

Ian F. Fergusson, Specialist in International Trade and
Rachel F. Fefer, Analyst in International Trade and
Finance
Finance
IF10002


Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF10002 · VERSION 22 · UPDATED

---