At the 30th anniversary celebration of the World Trade Organization, many participants pointed out that global trade is currently facing challenges such as unilateral tariff barriers and increasing uncertainty, and called on the international community to firmly uphold the multilateral trading system centered on the World Trade Organization and based on rules. The United States’ frequent abuse of tariff measures has sparked strong dissatisfaction and concern among the international community. Analysts point out that the World Trade Organization is facing a “survival crisis.” Where should the WTO go from here? Let’s hear from the experts.
Achievements
The WTO’s greatest contribution lies in its use of rules and institutions to transform global trade from a “survival of the fittest” jungle law into a rules-based cooperative system. Though imperfect, this system has significantly reduced transaction costs and driven the development of globalization.
Global trade volume has grown from approximately $5 trillion in 1994 to $33 trillion in 2024, an increase of over fivefold; through multiple rounds of negotiations (such as the Uruguay Round), it has driven the global average tariff rate down from approximately 40% in 1947 to below 5% today, with particularly significant reductions in industrial product tariffs; By 2023, the Dispute Settlement Body (DSB) had handled over 600 dispute cases, preventing a vicious cycle of unilateral retaliation; during the COVID-19 pandemic, it facilitated the implementation of the Trade Facilitation Agreement, shortening customs clearance times for medical supplies and alleviating supply chain disruptions…
Since its establishment, the World Trade Organization (WTO) has ensured the overall smooth and orderly operation of global trade by providing an open, stable, and predictable institutional environment. It has promoted economic and trade cooperation among its members, supported developing economies in participating in and benefiting from economic globalization, and made important contributions to enhancing the well-being of people around the world and promoting sustainable development.
The WTO was officially established on January 1, 1995. Its predecessor, the General Agreement on Tariffs and Trade (GATT), was a temporary, informal arrangement on tariffs and trade reached by some countries after World War II. As the number of members grew and trade volumes expanded, the world urgently needed a more formal and standardized trade regime. In 1986, the Uruguay Round negotiations began. After eight years of arduous negotiations, the WTO was established. Today, the WTO has 166 members.
An article on the website of the UAE’s National newspaper noted that the WTO’s strength lies in providing a framework for transparency and dialogue. In some key trade areas, only multilateral or WTO-based approaches can be effective or efficient. A typical example is digital trade, where standards must be established on a global scale, as regional standards could lead to a lack of interoperability between competing systems.
“The WTO’s greatest contribution lies in its use of rules and institutions to transform global trade from a ‘survival of the fittest’ jungle law into a rules-based cooperative system. Though imperfect, this system has significantly reduced transaction costs and driven the development of globalization.” Ding Yifan, a researcher at the World Development Institute of the Development Research Center of the State Council, summarized the WTO’s significant contributions to global trade development from five aspects: First, establishing multilateral trade rules, reducing global tariff barriers, and unifying trade rules, including goods trade, services trade, intellectual property trade, and government procurement; Second, maintaining trade order through the WTO’s dispute settlement mechanism; Third, accelerating trade liberalization and globalization, and promoting the integration of global supply chains; Fourth, supporting developing countries’ integration into global trade through “special and differential treatment,” allowing developing countries to gradually open their markets, and assisting regions like Africa in improving infrastructure and trade capabilities through “trade-related assistance”; Fifth, coordinating efforts to address crises and protectionism.
“The General Agreement on Tariffs and Trade (GATT) established after World War II and the subsequent WTO have formed a systematic rules framework, which has essentially established a rules-based international trade environment for fair competition. The establishment of this rules framework has made positive contributions to promoting the development of international trade and global economic growth,” said Huo Jian Guo, former director of the Institute of International Trade and Economic Cooperation under the Ministry of Commerce.
