WTO Deputy Director-General Offers Broad Suggestions for Reform

His agenda items were largely broad: (1) addressing trade and health via fighting vaccine export restrictions and facilitating the flow of public health goods, (2) using trade to address economic recovery, (3) using trade to improve environmental protections (4) addressing the global digital economy, (5) providing a level playing field by implementing disciplines on government subsidies, (6) promoting the participation of developing economies, (7) making agricultural trade less distorted, (8) addressing the role trade has in fostering peace, (9) reorienting WTO rules and levels toward modern economic realities, and (10) addressing the governance of the trading system through a binding dispute settlement system, restoring the legislative function and a director-general with a clear mandate and proactive agenda.

“This is a political challenge that must be taken seriously. There has to be more than just talk. It is not enough for government leaders to say that they favor multilateralism and then fail to invest enough to attain results,” Wolff said. He concluded his remarks by focusing on America's role in the world trade scene, singling out remarks made by U.S. trade representative nominee Katherine Tai and Treasury Secretary Janet Yellen. He said that American policies on international trade have been used as a convenient political punching bag, but that American domestic policies are just as important to wealth inequality outcomes felt by average citizens. He said U.S. politicians, and those of other countries, can “explain to the public and to governments the realities of trade, its needs, and how the trading system can be improved.”

Following Wolff's remarks, multiple trade experts took a stab at how best to reinsert the WTO as a forum for tackling trade's most pressing issues. Jennifer Hillman, senior fellow for trade at the Council on Foreign Relations and former WTO Appellate Body member, challenged Wolff's 10-point list, saying that it understated the extent to which the WTO is in an existential crisis. She then proposed a four-point list of items for WTO to address to remain relevant: the conflict with China; the toothlessness of the dispute settlement system; the restoration of balance between the negotiating function of the body and its administrative wing; and the organization's ability to address 21st century trade issues, including digital trade, labor, government subsidies, health and climate change.

“Failure to resolve the crisis over trade with China is going to accelerate the WTO's slide into irrelevance,” Hillman said. “If the WTO can't resolve a fight between the two largest trading partners over the largest amount of trade law issues, it really begs the question, 'How relevant is the WTO?' ... Also, resolving the China issue will require us all to confront the fact that China's self-described socialist market economy with Chinese characteristics may be irreconcilable with a WTO system that is based on the premise of market forces dictating competitive outcomes.”

Simon Evenett, professor of international trade at the University of St. Gallen in Switzerland, was also frank in his assessment of the WTO's condition. On climate change, he said, if the next WTO director-general doesn't get into the game quickly, there's a risk of being sidelined. On fighting the increasing trend of regional trade agreements in favor of multilateralism, Evenett said that the WTO should let the issue define the grouping of countries willing to reach an agreement, not the other way around.