WTO: Bali and beyond

I had the fortune to spend summer on the beautiful shores of Lake Geneva representing the UK at the World Trade Organization (WTO), a 159 country organisation that governs international economic relations. It was a welcome respite from the heat and humidity of DC during the summer – several weeks soaking up the fresh mountain air and swimming in the cool glacial waters of Lac Léman (as French speakers call it). But it wasn’t all fun and games. The WTO is at a crucial turning point, one which many onlookers say is crucial for the institution’s relevance and influence. This summer saw a historic changeover in the WTO’s leadership. For years the organization had been run by Pascal Lamy, a Frenchman who had previously served under Jacques Delors (who is famous for his work to integrate Europe into a “single market” during his time as President of the European Commission). This week, former Brazilian Ambassador to the WTO, Roberto Azevêdo, took over from Lamy, taking up the baton as the global champion for trade multilateralism.

But despite Azevêdo’s broad support and the plaudits he’s received upon succession, he has his work cut out. This December in Bali, trade ministers from WTO member states will gather to discuss a package of reforms aimed at easing trade, known as “trade facilitation”.  If agreed, this would conclude part of the Doha Development Agenda negotiations, which began in 2001, delivering around half of the benefits to the global economy of the whole of Doha. Although Doha has been declared dead many times over the past several years, pundits say that if the Bali ministerial doesn’t produce results, then “this time it’s for real.” Conversely, according to Azevedo, a successful meeting “will provide a much needed short in the arm for the global economy and the WTO”.

This all comes as national governments around the world pursue ever-increasing levels of trade protection. This week the European Commission reported that, since October 2008, over 700 new trade restrictive measures have been introduced. While the total number of new restrictions does appear to have slowed over time, there has recently been a disturbing increase in highly distortive measures, such as the levying of higher import duties.

For the WTO to maintain its status and stature in the 21^st Century, members must be willing and able to work together. National governments must recognize the risks that protectionism presents – global economic integration after World War II was premised on the notion that a failure to cooperate would almost certainly cause a return to conflict. It’s crucial that the Bali ministerial delivers tangible outcomes that are not only sufficient to demonstrate the importance of the WTO, but that also combat some of the more troubling trends in national trade policies. It’s high time that, rather than sticking our heads in the sand, we acknowledge protectionism for the scourge it is and recognize that at the end of the 20^th Century, the openness of international markets spurred the greatest expansion in global wealth ever witnessed. The 21^st Century is sure to deliver never-before-seen revolutions in energy, healthcare, technology and education. If governments cooperate to ensure that the benefits of those developments are accessible to consumers worldwide, we avoid a broken future.

And, on a personal note, I’d really like to be able to return at some point to visit a thriving WTO in the future – I never got a chance to try the famous Swiss fondue.