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Chapter III.B.3.) II. THE WORLD TRADE ORGANIZATION A. Introduction This chapter outlines the work of the World Trade Organization (WTO) in 2013, including the historic results of the 9th Ministerial Conference in Bali, Indonesia, and the work anticipated for 2014 to continue to find new, credible approaches to advancing negotiations in the WTO, including under the Doha Development Agenda (DDA). This chapter also details work of WTO Standing Committees and their subsidiary bodies, provides an overview of the implementation and enforcement of the WTO Agreement, and discusses accessions of new members to this rules-based organization. The United States maintains an abiding commitment to the rules-based multilateral trading system, which advances the well-being of the people of the United States and of our trading partners. The WTO represents the multilateral bedrock of U.S. trade policy, playing a vital role in securing new economic opportunities for American workers, farmers, ranchers, manufacturers, and service providers and promoting global growth and development with widely shared benefits. The United States continues to take a leadership role at the WTO, working to ensure that trade makes a powerful contribution in expanding the global economy. The WTO provides a forum for enforcing U.S. rights under the various WTO agreements to ensure that the United States receives the full benefits of WTO membership. The WTO agreements also provide a foundation for high-standard U.S. bilateral and regional agreements that make a positive contribution to a dynamic and open global trading system based on the rule of law. On a day-to-day basis, the WTO provides opportunities for advancing U.S. interests through its more than 20 standing committees (not including numerous additional working groups, working parties, and negotiating bodies). These groups meet regularly to permit WTO Members to exchange views, work to resolve questions of Members’ compliance with commitments, and develop initiatives aimed at systemic improvements. The DDA is the ninth round of multilateral trade negotiations to be carried out since the end of World War II. At the WTO’s Eighth Ministerial Conference in Geneva, Switzerland in December 2011, there was a consensus among Ministers that the DDA was at an impasse, with “significantly different perspectives on . possible results.” The agreed summary for the Ministerial Conference noted that “Members need to more fully explore different negotiating approaches,” and reiterated previous ministerial guidance that, where progress can be achieved on specific elements of the DDA, provisional or definitive agreements might be reached before all elements of the negotiating agenda are fully resolved. During the course of 2012 and 2013, Members took this guidance to heart in working collectively to complete a “Bali Package,” which included, in the form of the groundbreaking Trade Facilitation Agreement (TFA), the first new multilateral agreement in the nearly 20 year history of the WTO. The TFA, when fully implemented, will ensure that all WTO Members apply a variety of trade- facilitating customs and related measures that promise to substantially decrease the costs associated with trading and increase the value and volume of global trade. The Bali package also included important results on agriculture, such as decisions on food security, tariff-rate quota administration, export competition, and development, including a new Monitoring Mechanism to allow experience-based reviews of the implementation and operation of special and differential treatment provisions in WTO agreements. In parallel, the United States and other WTO Members have generated renewed focus on the day-to-day work of the WTO’s standing committees and other bodies, which remained instrumental in promoting transparency of WTO Member trade policies and providing critical fora for monitoring and resisting protectionist pressures during a time of global economic challenges. Through discussions in these fora, II. The World Trade Organization | 1 Members sought detailed information on individual Members’ trade policy actions and collectively considered them in light of WTO rules and their impact on individual Members and the trading system as a whole. The discussions enabled Members to assess their trade-related actions and policies in light of concerns that other Members raised and to consider and address those concerns in domestic policymaking. The United States also took advantage of opportunities in standing committees to consider how implementation of existing WTO provisions can be enhanced and to discuss areas that may hold potential for developing future rules. B. The Doha Development Agenda under the Trade Negotiations Committee and Other Priority WTO Activities The DDA was launched in Doha, Qatar, in November 2001, at the 4th WTO Ministerial Conference, where Ministers provided a mandate for negotiations on a range of subjects and work in WTO Committees. In addition, the mandate gives further direction on the WTO’s existing work program and implementation of the WTO Agreement. The goal of the DDA is to reduce trade barriers in order to expand global economic growth, development, and opportunity. The main focus of the negotiations under the DDA is in the following areas: agriculture; industrial goods market access; services; trade facilitation; WTO rules (i.e., trade remedies, fisheries subsidies, and regional trade agreements); and development. The Trade Negotiations Committee (TNC), established at the WTO’s Fourth Ministerial Conference in Doha, oversees the agenda and negotiations under the DDA in cooperation with the WTO General Council. The WTO Director General serves as Chairman of the TNC (Annex II identifies the various negotiating groups and special bodies responsible for the negotiations, some of which are the responsibility of the WTO General Council). In 2013, WTO Members worked collectively to follow through on the guidance from the 8th Ministerial Conference in order to make progress on discreet areas of the DDA with the possibility of early results. Broadly, the United States joined others in validating that the WTO had “turned the page” in the DDA negotiations and that only new, creative approaches could offer opportunities for delivering results. In this regard, the Membership focused on a select number of specific areas identified by Members for inclusion in the Bali Package, with the core result being the new TFA, supplemented by additional decisions on agriculture and development, particularly measures in favor of least developed countries. At the 9th Ministerial Conference in Bali in December 2013, Members hailed the completion of the Bali Package, which the new WTO Director General, Roberto Azevêdo, described as a much-needed vote of confidence in the WTO’s ability to complete multilateral trade negotiations. The Bali Package included a Ministerial Declaration directing Members to take up other parts of the Doha Agenda, including priority areas of the Round and those on which legally binding results were not included in the Package. Beyond the DDA negotiations, Parties to the WTO Government Procurement Agreement (GPA), a plurilateral agreement within the WTO framework, announced in Bali their expectation that the revised GPA should enter into force by March of 2014, and the United States presented its instrument of acceptance in Bali. The WTO is much more than a negotiating forum and venue for filing dispute settlement cases. The United States believes that the WTO demonstrates its value every day through the work of the standing committees and other WTO bodies. In 2013, the United States made effective use of the Council on Trade in Goods, the Committee on Import Licensing, and the Committee on Agriculture to raise the profile of trade protectionist actions by other Members. In the Committee on Technical Barriers to Trade, 2 | II. The World Trade Organization the United States and other Members began follow up work to the Sixth Triennial Review of that WTO agreement, including substantial progress in completing recommendations on good regulatory practices. Overall the United States noted the new energy in the operations of the WTO during the course of 2013, including areas outside the DDA, such as negotiations on a new Information Technology Agreement. This greater appreciation for the broad spectrum of WTO work, from the DDA to other areas, may be the critical factor in sustaining the relevance of the WTO in international trade in years to come. Prospects for 2014 The United States will continue to play a leadership role across the range of WTO activities. It is particularly important to sustain and enhance the WTO’s critical work in monitoring and providing a forum for resisting protectionism. Accordingly, the United States will be devoting additional attention to making the best possible use of the WTO’s existing committees and other structures, using them both to advance specific U.S. trade policy objectives as well as to ensure the ongoing strength and credibility of the multilateral trading system. Additionally, the United States will take up a leadership role in the follow up to the Bali Ministerial, seeking to inject new direction and creative approaches in other areas of the DDA that have been dormant in recent years. 1. Committee on Agriculture, Special Session Status Negotiations in the Special Session of the Committee on Agriculture are conducted under the mandate agreed upon at the Fourth WTO Ministerial Conference in Doha, Qatar that
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