Development in Place of Discord : Could a New Path Emerge for the WTO?

Last week, the World Trade Organization (WTO) concluded its 11th Ministerial Conference in Buenos Aires, Argentina, amid divergent expectations and goals. Significant issues remain unresolved, and WTO members continue to differ on how countries should approach WTO commitments in light of varying levels of economic development. As reports emerged that the Ministerial had failed to deliver, a number of developed and developing market nations reaffirmed their support for the multilateral system. U.S. Trade Representative (USTR) Robert Lighthizer stressed that the Ministerial will be “remembered as the moment when the impasse at the WTO was broken.” For the system to continue working, however, new paths will need to be forged on a number of issues.Setting a new course for the WTO is increasingly critical as markets (and the legal systems governing them) become more integrated. Global value chains make it possible for trade to fulfill its potential to lift hundreds of million people out of poverty, highlighting the need for a stronger connection between trade and economic development. Preserving the WTO’s legal and institutional framework will be necessary but not enough. Improving transparency in the rules of trade, a powerful means for reducing inequalities among countries, will also depend upon the actions of individual countries to strengthen laws and institutions. Amplifying the voices of a more diverse set of market stakeholders, including emerging enterprises and women, will be important in developed and developing markets alike