World Trade Organization
Updated February 16, 2024
World Trade Organization
The World Trade Organization (WTO) is an international
differences among developed and developing country
organization established in 1995 following the ratification
members across major issues. Agriculture, where
of the Uruguay Round Agreements, and today includes 164
multilateral solutions arguably remain ideal, is among the
members. It succeeded the 1947 General Agreement on
thorniest issues left on the Doha agenda. In 2015, members
Tariffs and Trade (GATT), created as part of the U.S. and
agreed to limited deals, including on export subsidies and
Europe-led post-WWII effort to build a stable, open
measures for least developed countries. Doha’s legacy may
international trading system. The WTO’s basic functions
be the successful negotiation of the 2013 Trade Facilitation
are: administering its agreements; serving as a negotiating
Agreement, which removes customs obstacles at the border.
forum for trade liberalization and rules; and providing a
Table 1. GATT/WTO Rounds
mechanism to settle disputes. The multiple WTO
agreements cover trade in goods, agriculture and services;
Year
Name Subjects covered
Members
remove tariff and nontariff barriers; and establish rules on
1947-
Geneva, 5 rounds of tariff reductions
23 (1947);
government practices relating to trade (e.g., trade remedies,
1961
Annecy,
26 (1961)
technical barriers to trade, intellectual property rights (IPR),
Torquay,
and government procurement). The agreements are based
Geneva
on the core principles of nondiscrimination—most-favored
II, Dil on
nation (MFN) and national treatment, fair competition, and
1964-67 Kennedy Tariffs, antidumping measures
62
transparency. WTO rules also allow for exceptions, such as
1973-79 Tokyo
Tariffs, antidumping, subsidies, TBT,
102
preferential treatment/flexibilities for developing countries.
government procurement
The GATT/WTO system over time has led to a significant
1986-
Uruguay Tariffs, nontariff measures, rules,
123
reduction of trade barriers, supported trade expansion and
1994
services, IPR, dispute settlement,
economic growth, and helped manage trade frictions. At the
textiles, agriculture, WTO institution
same time, the WTO faces serious challenges. One key
2001-
Doha
Tariffs, nontariff measures, agriculture, 142 (2001);
concern raised by observers is that the WTO is losing
2015*
services, trade facilitation, trade
164
relevance due to its inability to adapt to the modern global
remedies, and development
(current)
economy. For decades, members struggled to negotiate a
Source: CRS based on the WTO.
successful round of major trade liberalization since 1994. In
Note: *In 2015, WTO members failed to reaffirm Doha’s mandates.
recent years, many have increasingly resorted to measures
that may violate core trade rules. Moreover, challenges,
MC13 Prospects
such as the Coronavirus Disease 2019 (COVID-19)
WTO members held their latest ministerial conference—the
pandemic and Russia’s 2022 war in Ukraine, have disrupted
WTO’s top decision-making body and generally seen as an
global trade and supply chains and prompted trade-related
action-forcing event—in June 2022 and achieved several
responses. WTO members are considering various reforms
outcomes, including a limited multilateral agreement on
to the institution in attempts to safeguard and improve it.
fisheries subsidies. The fisheries deal, subject to prolonged
Congress has recognized the WTO as the “foundation of the
talks since 2001, commits members to curb certain harmful
global trading system,” and it plays a legislative and
subsidies. It was notable as the only current multilateral
oversight role over WTO agreements. Some Members have
negotiation within the WTO and first to cover sustainability
expressed support for WTO reforms, new rules, and U.S.
issues. WTO members have continued talks on key issues
leadership (e.g., S.Res. 202, S. 446). The Biden
left out of the deal, notably subsidies related to overfishing
Administration committed to renewed U.S. support for
and overcapacity—see CRS In Focus IF11929. Other
multilateralism and WTO reform, and remains engaged in
decisions included extending a moratorium on e-commerce
ongoing negotiations. Amid debates over the WTO’s future,
duties and a package on WTO responses to emergencies,
several issues may be of interest to Congress, including the
covering food security, a World Food Programme
effects of WTO agreements on the U.S. economy, outcomes
exemption from export restrictions, and IP-related
of reform and negotiation efforts, and the value of U.S.
pandemic responses (see below). Many observers generally
viewed MC12 outcomes as boosting the WTO’s credibility
membership and leadership within the WTO.
.
The Doha Round
WTO leaders framed the deals as demonstrating the global
trading system “can respond to some of the most pressing
The Doha Development Agenda, the most recent “round”
challenges of our time,” while emphasizing it is critical to
of multilateral negotiations, was launched in 2001, but
build on this groundwork by the next ministerial.
ended in stalemate in 2015 with no clear path forward
(Table 1). The WTO’s diverse membership and the “single
The 13th Ministerial Conference (MC13) is set for February
undertaking” approach made consensus on the broad Doha
26-29, 2024. Members face decisions on priority issues
mandate difficult, and these aspects continue to beset
leftover from MC12, including whether to again extend the
ongoing talks today. Doha was characterized by persistent
e-commerce moratorium (set to expire in March 2024),
https://crsreports.congress.gov
World Trade Organization
opposed by some countries like India; bridge differences in
trading system. Amid this backdrop, U.S. officials contend
the second phase of fisheries talks and in agriculture; and
that WTO rules were not designed to effectively handle the
clarify roadmaps toward WTO reform including on dispute
challenges of China’s statist economic policies. U.S. talks
settlement (DS). Members are also set to formally endorse
with the EU and Japan have explored ways to strengthen or
the accessions of Comoros and Timor-Leste, increasing
create rules on such issues, e.g., industrial subsidies.
WTO membership to 166. Some observers have tempered
COVID-19. A focus of MC12 was COVID-19 related
expectations for a substantive package of MC13 outcomes,
global trade and economic disruptions, which tested
but expect decisions that take stock of incremental progress.
Plurilateral Initiatives
coordination in trade policies, upset supply chains, and
spurred trade protectionism. Many countries viewed the
While multilateral efforts have generally progressed slowly,
WTO as playing an important role in tackling the trade
various plurilateral talks among subsets of members are
policy challenges of the pandemic. Members agreed at
underway. The United States and others point to plurilateral
MC12 to a five-year waiver and clarifications of certain
deals as a key means to address priority issues on the global
WTO provisions concerning patents and compulsory
trade agenda. Some WTO members raise concerns that
licenses for COVID-19 vaccines, amid concerns over
plurilaterals could marginalize non-participating countries,
delays in their production and distribution—see CRS
or allow “free riders” to benefit from others’ commitments.
Report R47231, World Trade Organization: “TRIPS
Agreements with U.S. membership cover key sectors, e.g.,
Waiver” for COVID-19 Vaccines. They also committed to a
• Government Procurement Agreement (GPA).
future decision on whether to extend the waiver to COVID-
Revised in 2014, provides market access for various
19 diagnostics and therapeutics. Ahead of MC13, WTO
nondefense government projects to its 48 signatories.
members affirmed “consensus could not be reached” on
• Information Technology Agreement (ITA). In 2015
extending the waiver.
members expanded the 1996 ITA product coverage for
duty-free treatment (applied on an MFN basis).
WTO Reform. WTO members agreed on a process for
• Joint Initiative on Services Domestic Regulation.
reform efforts at MC12. They committed “to improve all
Concluded in December 2021, 67 members agreed to
[WTO] functions” emphasizing the process “shall be
facilitate services trade by improving transparency on
Member-driven, open, transparent, inclusive.” U.S.
domestic processes and addressing regulatory barriers.
priorities include improving WTO transparency and
Ongoing plurilateral talks with U.S. participation include
members’ compliance with notification requirements, and
the Joint Initiative on E-commerce with over 80 members.
reforming use of special and differential treatment for
In late 2023, U.S. trade officials reversed longstanding U.S.
developing countries. Many U.S. frustrations are shared by
support for certain digital trade rules in the negotiations,
other WTO members, but approaches to solutions differ and
citing the need for policy space and internal consultations
remain contentious, particularly for DS reform. Many are
on sensitive areas like data flows. The move prompted
concerned about the DS system’s legitimacy absent any
reactions of both support and frustration in Congress and
reforms and negotiation of new agreements, thus preventing
from stakeholders. Other talks among 76 members under
key trade issues from being adjudicated. Successive U.S.
the Trade and Environmental Sustainability Structured
Administrations and some Members of Congress have
Discussions aim to advance a work plan on trade-related
voiced DS concerns, including over alleged “judicial
overreach” in panel decisions
climate measures and environmental goods and services.
. The U.S. blocking of
Ongoing Challenges
Appellate Body (AB) appointments led to the AB ceasing
to function in 2019. In 2020, the EU and others put into
Since the Doha Round, intractable issues and active debate
effect an appeal arbitration arrangement to hear their cases.
have characterized the WTO. Many WTO members concur
WTO members aim to have “a fully and well-functioning”
that the WTO must reform its negotiating, monitoring, and
DS system “accessible to all Members by 2024;” reform
DS functions to remain effective. While MC12 appeared to
discussions have progressed but remain in informal stages.
reenergize efforts and optimism for some, others point to
key issues left aside and incremental progress made in
Trade Enforcement. Some observers are concerned that
advance of MC13. The impact of WTO agreements and
tariffs imposed by President Trump and largely maintained
prospects for ongoing talks remain oversight issues for
by President Biden, and counter-tariffs by U.S. trading
Congress. In February 2024, the House Ways and Means
partners have strained the WTO and DS system. In this
Trade Subcommittee held a hearing on advancing U.S.
view, unilateral measures, some pursued in the name of
interests at MC13. Members of Congress have expressed
national or economic security, could undermine the WTO’s
views on WTO negotiating priorities in legislation and
credibility and lead to new restrictions. While WTO rules
urged U.S. engagement and leadership in specific areas.
offer flexibility for temporary measures justified by
Negotiating Agenda. Members’ ability to negotiate rules is
national security or health crises, the spread of pandemic-
central to WTO legitimacy, but “hostage-taking” tactics and
related trade restrictions amplified such concerns. In 2022,
elusive consensus are often prevalent. Some leftover Doha
the United States and some countries invoked national
agenda issues remain contentious and seem intractable, e.g.,
security justifications in revoking Russia’s MFN status after
attempts to discipline agricultural subsidies or resolve
it invaded Ukraine. U.S. officials maintain that a country’s
concerns over public stockholding programs. Further, with
“essential security interests” is self-judging and not
emergence of new trade barriers, global supply chains, and
reviewable by DS panels, despite recent adverse decisions.
technology advances since 1995, countries have sought to
address “21st century” issues like digital trade, state-owned
Cathleen D. Cimino-Isaacs, Analyst in International Trade
enterprises, and climate change that pose challenges to the
and Finance
https://crsreports.congress.gov
World Trade Organization
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 34 · UPDATED