2009 Reports

The Global Trade Architecture and the Developing World

Khor, Martin; Ocampo, Jose A.

It can be argued that the main stated objectives of the World Trade Organization are those of raising living standards, full employment and growth of real income, as well as ensuring that developing countries secure a fair share in global trade growth, whilst reduction of tariffs and non-tariff barriers and elimination of discriminatory treatment are instruments to achieve them. However, in practice, the means have many times prevailed over the ends and, in particular, insufficient attention has been given to the "development dimensions" of the global trading system, in particular on what trading rules and complementary policies are necessary to maximize the trade-development link. This paper looks at the major aspects of the trading system and its relations to development. It is divided in six parts. The first summarizes the process and outcome of the Uruguay Round of negotiations that created WTO. The second considers the WTO agenda from the point of view of development. The third analyzes more specifically the proposals on market access that have surrounded the current Doha round. The fourth takes a look at decision making in WTO and its dispute settlement mechanism. The fifth analyzes the proliferation of free trade agreements over recent decades. The sixth draws some brief conclusions.