Updated December 7, 2022
World Trade Organization
The World Trade Organization (WTO) is an international
ongoing talks today. Doha was characterized by persistent
organization established in 1995 following the ratification
differences among the United States, the European Union,
of the Uruguay Round Agreements, and today includes 164
and developing countries across major issues. Developing
members. It succeeded the 1947 General Agreement on
countries sought the reduction of agriculture tariffs and
Tariffs and Trade (GATT), created as part of the U.S. and
subsidies by developed countries, nonreciprocal market
Europe-led post-WWII effort to build a stable, open
access for manufacturing goods, and protection for services
international trading system. The WTO’s basic functions
industries. Developed countries sought reciprocal trade
are: administering its agreements; serving as a negotiating
liberalization, especially access to advanced developing
forum for trade liberalization and rules; and providing a
countries’ industrial and services sectors, while retaining
mechanism to settle disputes. The multiple WTO
some protection for agriculture. Agriculture, where
agreements cover trade in goods, agriculture and services;
multilateral solutions arguably remain ideal, is among the
remove tariff and nontariff barriers; and establish rules on
thorniest issues left on the Doha agenda. In 2015, members
government practices relating to trade (e.g., trade remedies,
agreed to limited deals, including on export subsidies and
technical barriers to trade, intellectual property rights (IPR),
measures for least developed countries. Doha’s legacy may
and government procurement). The agreements are based
be the successful negotiation of the 2013 Trade Facilitation
on the core principles of non-discrimination—most-favored
Agreement, which removes customs obstacles at the border.
nation (MFN) and national treatment, fair competition, and
Table 1. GATT/WTO Rounds
transparency of trade rules and regulations. WTO rules
allow for exceptions, such as preferential treatment and
Year Name
Subjects covered
Members
flexibilities for developing countries.
1947- Geneva,
5 rounds of tariff reductions
23 (1947);
The GATT/WTO system over time has led to a significant
1961 Annecy,
26 (1961)
reduction of trade barriers, supported trade expansion and
Torquay,
Geneva II,
economic growth, and helped manage trade frictions. At the
Dil on
same time, the WTO faces serious challenges. One key
concern raised by observers is that the WTO is losing
1964- Kennedy
Tariffs and antidumping measures
62
1967
relevance due to its inability to adapt to the modern global
economy. For decades, members struggled to negotiate a
1973- Tokyo
Tariffs, antidumping, subsidies, TBT,
102
successful round of major trade liberalization since 1994. In
1979
government procurement
recent years, many have increasingly resorted to measures
1986- Uruguay
Tariffs, nontariff measures, rules,
123
that may violate core trade rules. Moreover, challenges,
1994
services, IPR, dispute settlement,
such as the Coronavirus Disease 2019 (COVID-19)
textiles, agriculture, WTO institution
pandemic and Russia’s 2022 war in Ukraine, have disrupted
2001- Doha
Tariffs, nontariff measures, agriculture, 142 (2001);
global trade and supply chains and prompted trade-related
2015*
services, trade facilitation, trade
164
responses. WTO members have proposed various reforms
remedies, and development
(current)
to the institution in attempts to safeguard and improve it.
Source: CRS based on WTO.
Note: *In 2015, WTO members failed to reaffirm Doha’s mandates.
Congress has recognized the WTO as the “foundation of the
global trading system,” and it plays a legislative and
MC12
oversight role over WTO agreements. Some Members have
Observers generally view Ministerial Conferences (MC) as
expressed support for WTO reforms, new rules, and U.S.
action-forcing events for the WTO. After significant delay,
leadership (e.g., S.Res. 101, S. 3708). The Biden
WTO members held the 12th MC in June 2022, with several
Administration committed to renewed U.S. support for
outcomes, including a limited multilateral agreement on
multilateralism and WTO reform, and remains engaged in
fisheries subsidies. The deal, resulting from prolonged talks
ongoing negotiations. Amid debates over the WTO’s future,
since 2001, commits to curb certain harmful subsidies. It
several issues may be of interest to Congress, including the
was notable as the only current multilateral negotiation
WTO agreements’ effects on the U.S. economy, outcomes
within the WTO and the first to cover sustainability issues.
of reform and negotiation efforts, and the value of U.S.
WTO members are to continue talks on key issues left out
membership and leadership within the WTO.
of the final agreement—see CRS In Focus IF11929. Other
The Doha Round
decisions include extending a moratorium on e-commerce
duties and a package on WTO responses to emergencies,
The Doha Development Agenda, the latest “round” of
covering food security, a World Food Programme
multilateral negotiations, was launched in 2001, but ended
exemption from export prohibitions, and pandemic
in stalemate in 2015 with no clear path forward (Table 1).
responses, including an IP waiver (see below). Observers
The WTO’s diverse membership and the “single
undertaking” approach
viewed MC12 outcomes as boosting the WTO’s credibility,
made consensus on the broad Doha
while urging continued progress on outstanding critical
mandate difficult, and these aspects continue to beset
issues, such as on agriculture, subsidies, and WTO reform.
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World Trade Organization
WTO leadership framed the deals as demonstrating that the
COVID-19. A key focus of MC12 was the global trade and
multilateral trading system “can respond to some of the
economic disruptions due to COVID-19, which tested
most pressing challenges of our time.”
coordination in global trade policies, upset supply chains,
Plurilateral Initiatives
and resulted in trade protectionism. At the onset of the
pandemic, the WTO committed to work to minimize
While multilateral efforts have generally progressed slowly,
disruptions to trade, and encouraged WTO members to
various plurilateral talks among subsets of members are
notify new trade measures. At the same time, many
underway. Agreements with U.S. membership cover key
countries reaffirmed the trading system, lifted temporary
sectors and may serve as potential models for other efforts:

restrictions, and viewed the WTO as playing an important
Government Procurement Agreement (GPA).
role in tackling the trade policy challenges of the pandemic.
Provides market access for various nondefense
Some members advocated for a plurilateral deal on medical
government projects to its 48 signatories. The revised
goods. Delay in production and distribution of COVID-19
2014 GPA expanded market access and covered entities.

vaccines led to calls by some countries to waive certain IPR
Information Technology Agreement (ITA). A subset
rules. The MC12 decision provides for a five-year waiver
of members in 2015 expanded the 1996 ITA product
and clarifications of certain WTO requirements concerning
coverage for tariff-free treatment, eliminating tariffs on
patents and compulsory licenses for COVID-19 vaccines.
201 new goods, applied on a MFN basis to all members.

Debate is ongoing among WTO members on a possible
Joint Initiative on Services Domestic Regulation.
waiver extension to COVID-19 diagnostics and therapeutics
Concluded in December 2021, 67 members agreed to
(For more, see CRS Report R47231.)
facilitate services trade by improving transparency on
domestic processes and addressing regulatory barriers.
WTO Reform. At MC12, WTO members did not announce
concrete solutions, but agreed on a process for addressing
Ongoing plurilateral talks with U.S. participation include
reforms. They committed “to improve all [WTO] functions”
the Joint Initiative on E-commerce with over 80 members.
emphasizing the process “shall be Member-driven, open,
The Trade and Environmental Sustainability Structured
transparent, inclusive.” The Biden Administration has
Discussions (TESSD) among 70 plus members aims to
supported WTO reform so that the institution “empowers
advance a work plan on trade-related climate measures and
workers, protects the environment, and promotes equitable
environmental goods and services. The United States and
development.” Many current U.S. frustrations with the
others point to plurilateral deals as a key means to address
WTO are shared by some Members of Congress and other
new issues. Some members raise concerns that plurilaterals,
WTO members, but approaches to solutions differ. U.S. and
while useful, could marginalize nonparticipating countries
other proposals remain under debate, including on WTO
or allow “free riders” to benefit from others’ commitments.
transparency/notification requirements, and the extent of
Ongoing Challenges
special and differential treatment for developing countries.
Since the Doha Round, intractable issues and active debate
Dispute settlement also has been a major focus of reform.
have characterized the WTO. While MC12 appeared to
Supporters view the DS system as a WTO success. Others
reenergize efforts and optimism for some, others point to
are concerned about the system’s legitimacy absent reforms
significant issues left aside. Many WTO members concur
and if WTO members do not conclude any new agreements,
that the WTO must reform its negotiating, monitoring, and
thus preventing key issues from being adjudicated.
dispute settlement (DS) functions to remain effective. The
Successive U.S. administrations and some Members of
impact of new WTO agreements and prospects for ongoing
Congress have voiced DS concerns, including over alleged
talks remain oversight issues for Congress. Some Members
“judicial overreach” in panel decisions, especially on trade
of Congress have expressed views on WTO negotiating
remedies. The U.S. blocking of Appellate Body (AB)
priorities and reforms through resolutions and directed the
appointments led to the AB ceasing to function in 2019. In
executive branch to increase U.S. engagement in specific
2020, the EU and others put into effect an appeal arbitration
areas. Congress could hold hearings or submit letters to the
arrangement to hear their cases. At MC12, members
U.S. Trade Representative about related actions or plans.
committed to have “a fully and well-functioning dispute
Negotiating Agenda. Some issues left on the Doha agenda
settlement system accessible to all Members by 2024.”
remain contentious and appear intractable, e.g., attempts to
Trade Enforcement Actions. Some observers are
discipline agricultural subsidies or resolve concerns on
concerned that U.S. tariffs imposed by President Trump and
public stockholding programs. Further, since 1995, new
largely maintained under Biden, and counter-tariffs by other
trade barriers, technology advances, and other issues have
countries have further strained the WTO and DS system.
emerged, prompting countries to seek to address issues,
Concerns include that unilateral measures, some pursued by
such as digital trade, state-owned enterprises, and climate
countries in the name of national or economic security, may
change that pose challenges to the trading system. MC12
undermine the WTO’s credibility and lead to new trade
provided an opportunity for decisions on new rules and
restrictions. While WTO rules offer flexibility for
taking stock of the evolving agenda. The WTO Director-
temporary measures justified by national security or health
General emphasized the importance of continued progress
crises, the spread of pandemic-related trade restrictions
by MC13, building on this groundwork. U.S. officials also
amplified such concerns. The United States and some WTO
contend that WTO rules were not designed to effectively
members have invoked national security justifications to
handle the challenges of China’s statist economic policies.
revoke MFN status to Russia over its invasion of Ukraine.
U.S.-EU-Japan talks, recently restarted, aim to strengthen
rules on such issues, including WTO rules on subsidies.
Cathleen D. Cimino-Isaacs, Analyst in International Trade
and Finance
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World Trade Organization

IF10002


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