Updated May 27, 2022
The World Trade Organization
The World Trade Organization (WTO) was established on
The Doha Round
January 1, 1995, following the ratification of the Uruguay
The Doha Development Agenda, the latest “round” of
Round Agreements, and today includes 164 members. It
multilateral trade negotiations, was launched in 2001, but
succeeded the 1947 General Agreement on Tariffs and
ended in stalemate, with no clear path forward (Table 1).
Trade (GATT), created as part of the post-WWII effort to
The WTO’s large and diverse membership and the “single
build a stable, open international trading system. The WTO
undertaking” approach made consensus on the broad Doha
has three basic functions: (1) administering its agreements;
mandate difficult. Talks were characterized by persistent
(2) serving as a negotiating forum for new trade
differences among the United States, European Union (EU),
liberalization and rules; and (3) providing a mechanism to
and developing countries across major issues. Developing
settle disputes. The multiple WTO agreements cover trade
countries sought reduction of agriculture tariffs and
in goods, services, and agriculture; remove tariff and
subsidies by developed countries, nonreciprocal market
nontariff barriers; and establish rules on government
access for manufacturing goods, and protection for services
practices that directly relate to trade, e.g., trade remedies,
industries. Developed countries sought reciprocal trade
technical barriers to trade (TBT), intellectual property rights
liberalization, especially access to more advanced
(IPR), and government procurement. The agreements are
developing countries’ industrial and services sectors, while
based on the principles of nondiscrimination among
retaining some protection for agriculture. Agriculture,
countries—most-favored nation (MFN) treatment, national
where multilateral solutions arguably remain ideal, is
treatment, fair competition, and transparency of trade rules
among the thorniest issues left on the Doha agenda. In
and regulations. Some exceptions are allowed, such as
2015, members agreed to limited deals, including on export
preferential treatment for developing countries and regional
subsidies and measures for least developed countries.
and bilateral trade agreements outside the WTO.
Doha’s lasting legacy may be the successful negotiation of
The GATT/WTO system over time has led to a significant
the Trade Facilitation Agreement (TFA), which entered into
reduction of trade barriers, supported trade expansion and
force in 2017 and aims to remove customs obstacles and
economic growth, and helped manage trade frictions. At the
inefficiencies at the border.
same time, the WTO faces serious challenges. One key
Table 1. GATT/WTO Rounds
concern is that the WTO is losing relevance due to its
Year Name
Subjects covered
Countries
inability to adapt to the modern global economy with
members’ failure to negotiate a successful round of major
1947- Geneva,
5 rounds of tariff reductions
23 (1947);
trade liberalization since 1994 and more recently, increased
1961 Annecy,
26 (1961)
measures that may violate core trade rules. Members have
Torquay,
Geneva II,
proposed reforms to the institution in attempts to safeguard
Dil on
and improve it. Recent challenges, such as the Coronavirus
1964- Kennedy
Tariffs and antidumping measures
62
Disease 2019 (COVID-19) pandemic and Russia’s 2022
1967
invasion of Ukraine have caused disruptions to global trade
1973- Tokyo
Tariffs, antidumping, subsidies, TBT,
102
and prompted trade-related responses by WTO members.
1979
government procurement
Ministerial Conferences (MC) are generally seen as action-
1986- Uruguay
Tariffs, nontariff measures, rules,
123
forcing events for the WTO. At the last MC11 in 2017, no
1994
services, IPR, dispute settlement,
major deliverables were announced, leaving the stakes high
textiles, agriculture, WTO institution
for MC12, to be held in mid-June 2022 after several delays
2001- Doha
Tariffs, nontariff measures, agriculture, 142 (2001);
due to COVID-19. Prospects for major decisions remain
2015*
services, trade facilitation, trade
164
uncertain, though members have committed to make
remedies, and development
(current)
progress on issues, such as fisheries subsidies negotiations,
Source: WTO.
trade responses to the pandemic, and digital trade.
Notes: * In 2015, WTO members failed to reaffirm Doha’s mandates
and many observers considered the round to be effectively over.
Congress has recognized the WTO as the “foundation of the
global trading system,” and plays a legislative and oversight
Plurilateral Initiatives
role over WTO agreements. Some Members have expressed
While multilateral efforts have progressed slowly, several
support for WTO reforms and U.S. leadership. As debates
plurilateral talks are underway within and around the WTO.
over the WTO’s future intensify, several issues may be of
Past agreements with U.S. membership cover key sectors
interest to Congress, including WTO agreements’ effects on
and are viewed as potential models for other efforts.
the U.S. economy, outcomes of reform and negotiation
efforts, and the value of U.S. membership and leadership.
Government Procurement Agreement (GPA).
Provides market access for various nondefense
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The World Trade Organization
government projects to its 48 signatories. The revised
COVID-19. WTO members face challenges in responding
2014 GPA expanded market access and covered entities.
to the global trade and economic disruptions from COVID-
19, which has tested coordination in global trade policies,
Information Technology Agreement (ITA). A subset
upset supply chains, and resulted in trade protectionism.
of members agreed in 2015 to expand product coverage
The WTO committed to work to minimize disruptions to
for tariff-free treatment in the 1996 ITA. The expansion
trade, and encouraged WTO members to notify new trade
eliminates tariffs on 201 additional technology goods,
measures. At the same time, many countries have
applied on a MFN basis to all WTO members.
reaffirmed the trading system, lifted temporary restrictions,
Joint Initiative on Services Domestic Regulation.
and view the WTO as playing an important role in tackling
Concluded in December 2021, 67 members agreed to
trade policy challenges that have emerged. Some members
facilitate services trade by improving transparency on
advocate for a plurilateral deal on medical goods. Delay in
domestic processes and addressing regulatory barriers.
production and distribution of COVID-19 vaccines led to
Other plurilateral negotiations of U.S. interest include the
calls by some countries to waive certain IPR rules on
joint initiative on e-commerce with over 80 members,
vaccines, which the Biden Administration generally
aiming to conclude an agreement in 2022. U.S. priorities
supports. In May 2022, following talks among the United
include disciplines on cross-border data flows and bans on
States, EU, India and South Africa, a compromise proposal
data localization and forced technology transfer. The Trade
was issued, but debate over the final terms remains ongoing
and Environmental Sustainability Structured Discussions
and contentious. See CRS In Focus IF11858.
(TESSD) among more than 70 members aims to advance a
WTO Reform. The Biden Administration has indicated
work plan on trade-related climate measures and
interest in WTO reforms so that the institution “empowers
environmental goods and services. Some members raise
workers, protects the environment, and promotes equitable
concerns that plurilateral approaches, while useful, could
development.” It points to the need to update all three WTO
potentially marginalize non-participating countries or allow
pillars to increase flexibility and strengthen transparency to
for free riders who benefit from others’ commitments.
address global challenges. Some U.S. frustrations are not
Ongoing Challenges
new and are shared by Members of Congress, other WTO
Since the Doha Round, intractable issues and active debate
members and past U.S. Administrations, but approaches to
have characterized the WTO. Many members and observers
solutions differ. Several proposals under debate, e.g., with
concur that the WTO must adopt reforms to remain an
respect to transparency and notification requirements, and
effective institution, in terms of its negotiating, monitoring,
special and differential treatment for developing countries.
and dispute settlement (DS) functions. Some members have
Dispute Settlement. To supporters, the DS system is
also called on the WTO to more effectively address the
considered a WTO success. The United States has been an
trade policy challenges that emerged from the pandemic.
active user of the system (Table 2). However, some are
Negotiating Agenda. Some issues on the Doha agenda,
concerned about the DS system’s continued legitimacy
ideally negotiated multilaterally, remain contentious and
absent reforms and if no new WTO agreements are reached,
may founder for want of a negotiating venue, e.g., attempts
thus preventing new trade issues from being adjudicated.
to discipline agricultural subsidies or resolve concerns on
Table 2. WTO Dispute Settlement
public stockholding programs. In addition, since 1995, new
Total cases filed—all parties
612
trade barriers, technology advances, and other issues have
U.S. as Complainant
124
emerged. Several countries have sought to incorporate
issues, such as digital trade, state-owned enterprises, and
U.S. as Respondent
156
climate change that pose challenges to the trading system.
Source: WTO, as of May 2022.
Some, including the United States, point to plurilateral
Successive U.S. administrations have voiced major
deals as a possible way forward to address new issues.
concerns with DS, including what they consider “judicial
More broadly, U.S. officials contend that WTO rules were
overreach” in panel decisions, especially in the area of trade
not designed to effectively handle the challenges of
remedies. To spur reform, the Trump Administration
emerging markets like China that are not fully-fledged
blocked appointment of new jurists to the seven-member
market economies and where the state plays a major role.
Appellate Body (AB), which reviews appeals of disputes, a
To this end, U.S.-EU-Japan talks, recently restarted, aim to
practice the Biden Administration has continued. As a
strengthen rules on such issues, including on subsidies.
result, the AB ceased to function in late 2019. U.S. trade
officials have thus far rejected proposed AB reforms by
MC12 provides an opportunity for decisions on new rules
other members. In 2020, the EU and some others put into
and taking stock of ongoing negotiations. WTO members
effect an appeal arbitration arrangement to hear their cases.
have tempered expectations, however, signaling persistent
differences may prevent major announcements. In addition,
Unilateral Enforcement Actions. Some observers are
some members have been unwilling to negotiate in
concerned that U.S. tariffs imposed by President Trump and
meetings with Russia, given the ongoing war in Ukraine.
maintained under President Biden, and counter-tariffs by
Many view successful conclusion of the fisheries subsidies
other countries are further straining the WTO. Related
negotiations as important to upholding the WTO’s
WTO disputes are pending DS decisions. In one involving
legitimacy, in particular as the only multilateral negotiation
U.S. tariffs on China, a panel ruled in China’s favor. Some
underway. For more on MC12, see CRS In Focus IF11513.
express concern that unilateral measures, some pursued in
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The World Trade Organization
the name of national or economic security, may undermine
Cathleen D. Cimino-Isaacs, Analyst in International Trade
the WTO’s credibility and lead to new trade restrictions.
and Finance
While WTO rules offer flexibility for temporary measures
Rachel F. Fefer, Analyst in International Trade and
justified by national security or health crises, the spread of
Finance
pandemic-related trade restrictions amplified concerns.
IF10002
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