Annual Report 2021 Contents
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2021 Annual Report Who we are The World Trade Organization deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. Using this report This report covers the WTO’s activities in 2020 and early 2021. It begins with a message from the Director-General and an overview of 2020. This is followed by more in-depth accounts of the WTO’s areas of activity over the past year. Find out more Website: www.wto.org Email: [email protected] Telephone: +41 (0)22 739 51 11 Cover image: Rice cultivation in Thailand. Annual Report 2021 Contents Introduction 4 Message from Director-General Ngozi Okonjo-Iweala 6 Understanding the WTO 10 What we do 12 1 A brief history 14 A year in review 18 2020: a snapshot 20 Our year 22 Spotlight: Director-General 2 selection process 28 Membership 30 Joining the WTO 32 3 A global membership 36 002 ANNUAL REPORT 2021 Trade negotiations Supporting development and and discussions 38 building trade capacity 144 Changes to the rules of trade The WTO aims to help developing require the agreement of WTO countries build their trade capacity members, who must reach and allows them a longer time a decision through negotiations. to implement trade agreements. Hundreds of training courses are organized each year for officials 4 7 from developing countries. Implementation Outreach 166 and monitoring 66 The WTO maintains regular dialogue Various WTO councils and with the business community, committees seek to ensure that non-governmental organizations, WTO agreements are being properly parliamentarians, other international implemented. All WTO members organizations, the media and the undergo periodic scrutiny of their general public to enhance cooperation trade policies and practices. and raise awareness of trade issues. 5 Spotlight: COVID-19 8 Spotlight: 25th anniversary and world trade 76 of the WTO 171 Dispute settlement Secretariat and budget 190 activity in 2020 136 The WTO Secretariat has over 600 WTO members bring disputes to the regular staff and coordinates the WTO if they think their rights under activities of the WTO. Most of the trade agreements are being infringed. WTO’s annual budget consists of Settling disputes is the responsibility contributions by its members. 6 of the Dispute Settlement Body. 9 How the WTO is structured 204 WTO Chairpersons (as of 31 December 2020) 205 Directors-general 1995-2021 206 Membership of the WTO (as of 31 December 2020) 207 Abbreviations and further information 209 ANNUAL REPORT 2021 003 Introduction 1The overall objective of the WTO is to help its members use trade as a means to raise living standards, create jobs and improve people’s lives. The WTO operates the global system of trade rules and helps developing countries build their trade capacity. It also 06 provides a forum for its members Message from to negotiate trade agreements and Director-General to resolve the trade problems they Ngozi Okonjo-Iweala face with each other. 10 Understanding the WTO 12 What we do 14 A brief history Key events since start of mandate MESSAGE FROM 15 Feb: General Council selects Dr Ngozi Okonjo-Iweala as the Message from Director- WTO’s seventh Director-General. 1 Mar: On first day in office, General Ngozi Okonjo-Iweala DG calls on WTO members to adopt a “change of approach” to deliver results. s I write these words, the drop on record. But in the second world continues to grapple half of the year, as lockdowns began 15-17 Mar: DG makes official visit A with the COVID-19 pandemic to ease, trade rebounded strongly, to Nigeria, meets President and its devastating health and propelled by demand resulting from Muhammadu Buhari and senior economic consequences. Close to extraordinary levels of fiscal and members of the government. 4 million people have already lost monetary support, particularly in their lives. Millions more have lost advanced economies, as well as 23 Mar: DG is joined by heads of WHO, IMF, World Bank, livelihoods, or had their education the containment of the pandemic’s OECD, UNCTAD at Aid for Trade interrupted. Even as vaccine impact in several Asian countries. stocktaking event. production and roll-out gathers Restraint in the use of trade speed, the supply of doses remains protectionism was another important 31 Mar: DG announces the WTO’s far below what is needed. Poorer factor in the trade rebound: policies 2021 trade forecast. countries are being left behind did not prevent supply chains from 31 Mar: DG addresses G7 in vaccine access and economic restarting operations. Ultimately, for trade ministers. prospects. People are dying even 2020 as a whole, merchandise trade though the means exist to save them. would go on to decline by 5.3% in 1 Apr: DG establishes Delivery Unit to volume terms, and 7.6% in value – a coordinate efforts to reach outcomes at When 2020 started, we had barely severe contraction, to be sure, but 12th Ministerial Conference. heard of the novel coronavirus, and smaller than that seen in 2009, during 9 Apr: DG attends World Bank-IMF had no inkling of the impact it would the global financial crisis. spring meetings in Washington DC. go on to have on people’s lives and the global economy. Importantly, trade’s resilience 14 Apr: DG calls “vaccine summit” with represented a lifeline for millions, WTO members, vaccine manufacturers, international organizations to address The pandemic has had major effects enabling access to food and other vaccine inequity. on global trade – and on the day-to-day essential supplies. Despite some work of the WTO, which is the subject initial disruptions, the value of trade 26 Apr: On EU Trade Policy Day, of this annual report. The multilateral in medical products rose by 16%, DG discusses WTO reform with trading system has played an important and trade in personal protective Valdis Dombrovskis, European part in efforts to fight COVID-19, and equipment expanded by 50%. Commissioner for Trade. I am convinced that the WTO can and Agriculture trade was relatively 29 Apr: DG participates in must do more. unhindered, which meant vital food videoconference with German supplies continued to move around Chancellor Angela Merkel. In late 2019, WTO economists were the world, including to net food- projecting 2.7% growth for world importing developing countries. As 4 May: DG announces her four Deputy merchandise trade in 2020 – modest trade has picked up again, there Directors-General: Angela Ellard (United States), Anabel González by historical standards, due in part to have been supply shortages, logistics (Costa Rica), Jean-Marie Paugam protectionist measures and continuing bottlenecks, and price spikes, but all (France), Xiangchen Zhang (China). tensions around trade policy. By March would have been vastly more disruptive and April 2020, much of the global had businesses and households 10 May: DG meets with Italy’s Prime economy had come to a sudden stop, been compelled to look for domestic Minister Mario Draghi and senior members of the government in Rome to amid the large-scale implementation of alternatives to imported products. discuss global response to COVID-19. business closures, travel restrictions, and social distancing measures In Geneva, the WTO had to suspend 18 May: DG participates in Summit on necessary to curb the spread of in-person gatherings in March and the Financing of African Economies in COVID-19. Trade went into free fall. April. Negotiations, regular committee Paris, convened by French President Emmanuel Macron, attended by African meetings, and other discussions heads of state, heads of international In the second quarter of 2020, the subsequently resumed in virtual and organizations and EU leaders. volume of world merchandise trade hybrid formats, in line with the health shrank 15% year-on-year, the steepest authorities’ recommendations. The 006 ANNUAL REPORT 2021 Key events since start of mandate 19 May: DG meets EU Commission President Ursula von der Leyen and President of European Council Charles Michel in Brussels to discuss vaccine equity and role of trade in combating the pandemic 21 May: DG addresses G20 leaders at Global Health Summit on vaccine inequity. 26 May: DG delivers address at graduation ceremony for Class of 2021 of Johns Hopkins University School of Advanced International Studies. 31 May: DG meets with Kazakhstan President Kassym-Jomart Tokayev to discuss Kazakhstan’s chairmanship of 12th Ministerial Conference. 1 Jun: DG joins leaders of IMF, World Bank, WHO in call for US$ 50 billion investment in health, trade, finance to end pandemic. 2 Jun: DG meets CARICOM Secretary- General Irwin LaRocque, addresses CARICOM Council for Trade and Economic Development. 5 Jun: On World Environment Day, DG calls for sustainable trade to protect environment and ensure inclusiveness. 5 Jun: DG addresses meeting of APEC Ministers Responsible for Trade. The WTO can and must play a critical role in 7 Jun: DG welcomes President Kersti accelerating COVID-19 vaccine production Kaljulaid of Estonia to WTO. 8 Jun: On World Ocean Day, and in ensuring a strong, sustained, and DG calls on WTO members to conclude agreement on curbing inclusive global economic recovery. harmful fishing subsidies. 9 Jun: DG welcomes Tunisia’s Head of Government, Hichem Mechichi, to WTO. Twelfth Ministerial Conference (MC12), many of the trade restricting measures originally scheduled for June 2020 in were unwound, though too many still 9 Jun: DG participates in Africa Kazakhstan, was postponed, and is persist. Perhaps surprisingly, measures Roundtable with President Steinmeier (Germany) and President Macky now set to be held in Geneva from seeking to facilitate trade were more Sall (Senegal). 30 November to 3 December 2021. numerous and covered more traded merchandise, by value, than the 11 Jun: DG discusses trade issues with The WTO stepped up its longstanding new restrictions – US$ 225 billion prime ministers and ministers monitoring work to shed light on compared to US$ 180 billion.