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WTO REFORM. Uri Dadush Carnegie Endowment for International Peace September 15, 2009. WTO Reform: Time to Start is Now. WTO is an essential plank of globalization But has become sidelined on liberalization Needed: a more flexible approach to negotiations
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WTO REFORM Uri Dadush Carnegie Endowment for International Peace September 15, 2009
WTO Reform: Time to Start is Now • WTO is an essential plank of globalization • But has become sidelined on liberalization • Needed: a more flexible approach to negotiations • Reform process should start with coming Ministerial in Geneva
WTO, an essential plank of globalization • Some 370 disputes filed • Accession of China and 24 other countries • Agreements on Telecommunications and Financial Services • Aid for Trade
Sidelined on Liberalization Source: IMF, World Economic Outlook, April 2009
Why so difficult?: Combination of Factors • Tougher issues (agriculture) • Increased complexity (services) + + + + + • More numerous and diverse participants • Increased influence of large players (India, Brazil) • Increased influence of groups (LDCs) + + + + + • Single Undertaking and Consensus Rule
Reform Agenda Outline 1: Towards Plurilaterals • On single issues or small number of linked issues • Criteria for minimizing adverse effects on non-members • Preferential treatment for poorest countries • Criteria for accession of non-members • Subject to dispute settlement
Reform Outline 2: Harness RTAs • Don’t frown on (or fight!) all RTAs, but promote well designed ones • Well designed RTAs have low external barriers, simple and liberal rules of origin, and are broad and deep in their coverage
Reform Outline 3: Assist members design own trade reforms • Runs counter to mercantilist ethos of trade negotiators, yet…. • Most trade reform is autonomous • WB and IMF regularly engaged in advising countries without old fashioned conditionality • Can be done while retaining some negotiating chips (bindings) • Trade Policy Reviews a good instrument
Reform Outline 4: Opportunistic Multilateralization • Recognize that current “multilateral” agreements are rife with exceptions • Extend “flexible geometries” (plurilateral and regional) • Take modest steps to bind pre-existing liberalization • Bind in specific sectors
WTO Reform: Time to Start is Now WTO is an essential plank of globalization But has become sidelined on liberalization Needed: a more flexible approach to negotiations Reform process should start with coming Ministerial in Geneva