Updated January 5, 2021
The World Trade Organization
Overview
The Doha Round
The World Trade Organization (WTO) was established on
The Doha Development Agenda, the latest “round” of
January 1, 1995, following the ratification of the Uruguay
multilateral trade negotiations, was launched in 2001 but
Round Agreements, and today includes 164 members. It
ended in stalemate, with no clear path forward. The WTO’s
succeeded the 1947 General Agreement on Tariffs and
large and diverse membership and the “single undertaking”
Trade (GATT), created as part of the post-WWII effort to
approach made consensus on the broad Doha mandate
build a stable, open international trading system. The WTO
difficult. The negotiations were characterized by persistent
has three basic functions: (1) administering existing
differences among the United States, European Union (EU),
agreements; (2) serving as a negotiating forum for new
and developing countries on major issues, such as
trade liberalization and rules; and (3) providing a
agriculture, industrial tariffs and nontariff barriers, services,
mechanism to settle disputes. The multiple WTO
and trade remedies. Developing countries sought the
agreements cover trade in goods, services, and agriculture;
reduction of agriculture tariffs and subsidies by developed
remove tariff and nontariff barriers; and establish rules on
countries, nonreciprocal market access for manufacturing
government practices that directly relate to trade—for
sectors, and protection for services industries. In contrast,
example, trade remedies, technical barriers to trade (TBT),
developed countries sought reciprocal trade liberalization,
intellectual property rights (IPR), and government
especially commercially meaningful access to advanced
procurement (Table 1). The agreements are based on the
developing countries’ industrial and services sectors, while
principles of nondiscrimination among countries—most-
retaining some protection for their own agricultural sectors.
favored nation (MFN) treatment, national treatment, fair
competition, and transparency of trade rules and
Agriculture, where multilateral solutions arguably remain
regulations. Some exceptions, such as preferential treatment
ideal, remains among the thorniest issues on the agenda left
for developing countries and regional and bilateral trade
over from Doha. In 2015, members agreed to limited deals,
agreements outside the WTO, are allowed.
including on phasing out export subsidies, minimizing
impacts of food aid on local markets, and several measures
The GATT/WTO system over time has led to a significant
for least developed countries.
reduction of trade barriers, supported trade expansion and
economic growth, and helped manage trade frictions. At the
The lasting legacy of Doha may be the successful
same time, the WTO faces serious challenges. One
negotiation of the Trade Facilitation Agreement (TFA),
fundamental concern is that the WTO could lose relevance
which entered into force in early 2017 and aims to remove
due to its inability to adapt to the modern global economy
customs obstacles and inefficiencies at the border.
by its members’ failure to negotiate a successful round of
Table 1. GATT/WTO Rounds
major trade liberalization since 1994. Several members
have proposed reforms to the institution in attempts to
Year Name Subjects covered
Countries
safeguard and improve it.
1947- Geneva, 5 rounds of tariff reductions
23 (1947);
In 2021, new leaders are to confront these challenges. The
1961 Annecy,
26 (1961)
selection process for a new WTO Director-General (DG)
Torquay,
entered its final stages in late 2020, with Nigeria’s Ngozi
Geneva
II, Dil on
Okonjo-Iweala emerging as the candidate with the majority
of member’s support. The Trump Administration refused to
1964- Kennedy Tariffs and antidumping measures
62
back her candidacy. President-elect Biden has not opined
1967
on the leadership issue or the WTO specifically, but has
1973- Tokyo
Tariffs, antidumping, subsidies, TBT,
102
expressed support of multilateral institutions.
1979
government procurement
Congress has recognized the WTO as the “foundation of the
1986- Uruguay Tariffs, nontariff measures, rules,
123
global trading system,” and plays a legislative and oversight
1994
services, IPR, dispute settlement,
role over WTO agreements. Some Members have expressed
textiles, agriculture, WTO institution
support for WTO reforms and U.S. leadership; others
2001- Doha
Tariffs, nontariff measures, agriculture, 142 (2001);
introduced joint resolutions in 2020 to withdraw
2015*
services, trade facilitation, trade
164
congressional approval of WTO agreements. As debates
remedies, and development
(current)
over the WTO’s future intensify, several issues may be of
Source: WTO.
interest to Congress, including WTO agreements’ effects on
Notes: * In 2015, WTO members failed to reaffirm Doha’s mandates
the U.S. economy, outcomes of reform and negotiation
and many observers considered the round to be effectively over.
efforts, and the value of U.S. membership and leadership.
At the most recent WTO Ministerial Conference in 2017,
no major deliverables were announced, leaving the stakes
high for the next meeting. In 2020, members were forced to
https://crsreports.congress.gov

---

The World Trade Organization
postpone the 12th Ministerial (MC12) to 2021 due to the
work to minimize disruptions to trade, and encouraged
Coronavirus Disease 2019 (COVID-19) pandemic. MC12
WTO members to notify new trade measures. At the same
was widely anticipated as an action-forcing event for the
time, many countries have reaffirmed the trading system,
WTO. Members have committed to make significant
lifted restrictions, and view the WTO as playing an
progress on ongoing talks, including on fisheries subsidies,
important role in tackling trade policy challenges that have
and advancing e-commerce and other areas.
emerged from the pandemic. Some members have
Plurilateral Initiatives
advocated for a plurilateral agreement on medical goods.
While multilateral efforts have progressed slowly, several
WTO Reform. The Trump Administration indicated
plurilateral talks are underway within and around the WTO.
interest in reform of the WTO, including in: (1) addressing
Past agreements with U.S. membership cover key sectors
“unanticipated challenges of non-market economies”; (2)
and are viewed as successful models for other efforts.
ensuring respect in DS rulings for members’ “sovereign

policy choices”; (3) compelling members to adhere to WTO
Government Procurement Agreement (GPA). The
notification obligations; and (4) reassessing “developing
GPA provides market access for various nondefense
country status” that grants some members flexibilities in
government projects to its signatories. In force since
WTO commitments. Some U.S. frustrations are not new
April 2014, the revised GPA expanded market access
and are shared by other WTO members and past
and covered entities, and currently has 48 members.

Administrations, but approaches to solutions differ. Several
Information Technology Agreement (ITA). A subset
members have submitted proposals now under debate.
of members agreed in 2015 to expand product coverage
for tariff-free treatment in the 1996 ITA. The expansion
Dispute Settlement. To supporters, the DS system is
is to eliminate tariffs over seven years on 201 additional
considered a WTO success. The United States has been an
goods, applied on a MFN basis to all WTO members.
active user of the system (Table 2). However, some are
concerned about the DS system’s continued legitimacy
An ongoing plurilateral initiative of U.S. interest is the e-
absent reforms and if no new WTO agreements are reached,
commerce negotiations, launched in 2019, including over
thus preventing new trade issues from being adjudicated.
80 members. U.S. priorities include disciplines on cross-
border data flows and bans on data localization and forced
Table 2. WTO Dispute Settlement
technology transfer. Other plurilaterals are currently stalled,
Total cases filed—all parties
598
related to services and environmental goods. Some raise
U.S. as Complainant
124
concerns that plurilateral approaches, while useful, could
potentially marginalize non-participating countries or allow
U.S. as Respondent
156
for free riders who benefit from others’ commitments.
U.S. as Third Party
162
Ongoing Challenges
Source: WTO, as of December 2020.
Since the Doha Round, intractable issues and active debate
The Trump Administration voiced major concerns with DS,
have characterized the WTO. Many members and observers
including what it considers “judicial overreach” in panel
concur that the WTO must adopt reforms to remain an
decisions, which, in effect, may create new obligations not
effective institution, in terms of its negotiating, monitoring,
specifically negotiated, especially in the area of trade
and dispute settlement (DS) functions. In the near term,
remedies. To spur reform, the United States has blocked
some members have also called on the WTO to address the
appointment of new jurists to the seven-member Appellate
trade policy challenges that emerged from COVID-19.
Body (AB), which reviews appeals of dispute cases. As a
result, the AB ceased to function in December 2019. While
Negotiating Agenda. Some issues on the Doha agenda,
the EU and others have proposed reforms to address U.S.
ideally negotiated multilaterally, remain contentious and
concerns, thus far, they have been rejected by the United
may founder for want of a negotiating venue: for example,
States. A key question is the impact of the AB’s absence on
attempts to discipline agricultural subsidies or resolve
the effective enforcement of WTO rules moving forward.
concerns on public stockholding programs. In addition,
since 1995, new trade barriers, technology advances, and
Unilateral Enforcement Actions. Many observers are also
other issues have emerged. Developed countries have
concerned that recent U.S. tariffs and counter-tariffs by
sought to incorporate issues on the agenda, such as digital
other countries, as well as escalating trade disputes are
trade and state-owned enterprises that pose challenges to
further straining the WTO. Several related WTO disputes
the trading system. Some, including the United States, point
are pending DS decisions. In one involving U.S. tariffs on
to plurilaterals as the way forward to address new issues.
China, a panel ruled against the United States. Observers
express concern that unilateral tariffs, some pursued in the
More broadly, U.S. trade officials contend that WTO rules
name of national or economic security, may undermine the
were not designed to effectively handle the challenges of
credibility of the WTO and its key rules and principles, and
emerging markets like China that are not fully-fledged
lead to new trade restrictions. While WTO agreements offer
market economies. To this end, U.S.-EU-Japan discussions
ample flexibility for temporary measures justified by
aim to strengthen rules on subsidies and issues raised by
national security or health crises, the spread of export
non-market economies where the state plays a major role.
restrictions following COVID-19 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
resulted in trade protectionism. The WTO has committed to
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 24 · UPDATED

---