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Section one E V IE Understanding the WTO 02 W Who we are A global membership What we stand for A year in review What we do A message from WTO Director-General How it all comes together WTO Open Day

Section TWO negotiation Tr ade ade

Trade negotiations 14 Changes to the rules of require the agreement of all WTO members, who must reach consensus through rounds of negotiations. The most recent s round began in 2001. and monito and I Implementation and monitoring 28 mplementation Various WTO councils and committees seek to ensure that WTO agreements are being properly implemented. All WTO members undergo periodic scrutiny r of their trade policies and practices. ing

s D ettlement i s p

Dispute settlement 84 u te te

WTO members bring disputes to the WTO if they think their rights under trade agreements are being infringed. Settling disputes is the responsibility of the .

Building trade capacity 106 capacity trade Building The WTO aims to help developing countries build their trade capacity and allows them a longer time to implement trade agreements. Hundreds of training courses are organized each year for officials from developing countries. O U T

Outreach 120 R EAC The WTO maintains regular dialogue with non-governmental organizations, H parliamentarians, other international organizations, the media and the general public to enhance cooperation and raise awareness of trade issues. and BU and S EC

Secretariat and budget 138 R ETA DGET

The WTO Secretariat has over 600 regular staff and coordinates the activities of the R WTO. Most of the WTO’s annual budget consists of contributions by its 153 members. IAT

Abbreviations 155 Further information 156

World Trade Organization WTO website Annual Report 2011 www.wto.org 1 Understanding Who we are the WTO There are a number of ways of looking at the . It is an organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other.

The WTO was born out of negotiations, and everything the WTO does is the result of negotiations. The bulk of the WTO’s current work comes from the 1986–94 negotiations called the and earlier negotiations under the General Agreement on Tariffs and Trade (GATT). The WTO is currently the host to new negotiations, under the ‘ Development Agenda’ launched in 2001.

Virtually all decisions Where countries have faced trade barriers and wanted them lowered, the negotiations in the WTO are taken have helped to open markets for trade. But the WTO is not just about opening markets, and in some circumstances its rules support maintaining trade barriers — for example, to by consensus among protect consumers or prevent the spread of disease. all member countries. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations. These documents provide the legal ground rules for international commerce. They are essentially contracts, binding governments to keep their trade policies within agreed limits. Although negotiated and signed by governments, the goal is to help producers of goods and services, exporters, and importers conduct their business, while allowing governments to meet social and environmental objectives.

The system’s overriding purpose is to help trade flow as freely as possible — so long as there are no undesirable side effects — because this is important for economic development and well-being. That partly means removing obstacles. It also means ensuring that individuals, companies and governments know what the trade rules are around the world, and giving them the confidence that there will be no sudden changes of policy. In other words, the rules have to be ‘transparent’ and predictable.

Trade relations often involve conflicting interests. Agreements, including those painstakingly negotiated in the WTO system, often need interpreting. The most harmonious way to settle these differences is through some neutral procedure based on an agreed legal foundation. That is the purpose behind the dispute settlement process written into the WTO agreements.

A brief history 1994 1995 1996 1997 1998 1999 2000 2001 The WTO began life on 1 January 1995 but its trading system is half a century older. Since 1948, the WTO General Agreement on Tariffs and established Trade (GATT) had provided the rules for the system. Whereas GATT had April January February December May September January November In April the The WTO WTO 70 WTO Second Mike Moore Negotiations Fourth mainly dealt with trade in goods, the Marrakesh is born on General members Ministerial (New begin on Ministerial WTO and its agreements now cover Agreement 1 January. Council reach a Conference Zealand) services. Conference in trade in services, and in traded establishing creates the multilateral takes place becomes Doha, Qatar. the WTO May Regional agreement in Geneva. WTO March Doha inventions, creations and designs is signed. Renato Trade to open their Director- Negotiations Development (intellectual property). Ruggiero Agreements financial General. begin on Agenda is GATT 1994 is () takes Committee. services agriculture. launched. incorporated office sector. November in the WTO’s as WTO December Third umbrella Director- First Ministerial treaty for General. trade in Conference takes place in goods. takes place Seattle, US. in Singapore.

What is the WTO? World Trade Organization 2 www.wto.org/whatiswto Annual Report 2011 R E V IE

What we stand for W

The WTO agreements are lengthy and complex because they are legal texts covering a wide range of activities. But a number of simple, fundamental principles run throughout all of these documents. These principles are the foundation of the multilateral trading system.

Non-discrimination A country should not discriminate between its trading partners and it should not discriminate between its own and foreign products, services or nationals.

More open Lowering trade barriers is one of the most obvious ways of encouraging trade; these barriers include customs duties (or tariffs) and measures such as import bans or quotas that restrict quantities selectively.

Predictable and transparent Foreign companies, investors and governments should be confident that trade barriers should not be raised arbitrarily. With stability and predictability, investment is encouraged, jobs are created and consumers can fully enjoy the benefits of competition – choice and lower prices. More competitive Equal treatment Discouraging “unfair” practices, such as export subsidies and dumping products at below cost to gain market share; the issues are complex, and the rules try to establish what is is one of the basic fair or unfair, and how governments can respond, in particular by charging additional principles of import duties calculated to compensate for damage caused by unfair trade. the multilateral More beneficial for less developed countries Giving them more time to adjust, greater flexibility and special privileges; over three- trading system. quarters of WTO members are developing countries and countries in transition to market economies. The WTO agreements give them transition periods to adjust to the more unfamiliar and, perhaps, difficult WTO provisions.

Protect the environment The WTO’s agreements permit members to take measures to protect not only the environment but also public health, animal health and plant health. However these measures must be applied in the same way to both national and foreign businesses. In other words, members must not use environmental protection measures as a means of disguising protectionist policies.

2002 2003 2004 2005 2006 2007 2008 2009 2010

September September July September June January July April January Supachai Fifth Ministerial Pascal Lamy Ministerial Viet Nam Accession DG Pascal Lamy New “Chairs Panitchpakdi Ministerial discussions (France) discussions becomes the of the WTO’s reappointed for Programme” launched (Thailand) is Conference on the Doha becomes on the Doha WTO’s 150th newest second term of to support developing elected WTO takes place Round take WTO Round take member. member, four years. country universities. Director- in Cancún, place in Director- place in Cape Verde. General. Mexico. Geneva. General. Geneva. November July September First Global Ministerial Second Global Second WTO Open December September Review of discussions Review of for Day in Geneva. Sixth Ministerial First WTO Aid for Trade on the Doha Trade takes place Conference Public Forum takes place Round take in Geneva. takes place in takes place in Geneva. place in , in Geneva. Geneva. September . Aid for First WTO Open Trade Initiative Day in Geneva. is launched. Hong Kong November Declaration Seventh Ministerial is approved. Conference begins in Geneva.

World Trade Organization What is the WTO? Annual Report 2011 www.wto.org/whatiswto 3 Understanding What we do the WTO The WTO is run by its member governments. All major decisions are made by the membership as a whole, either by ministers (who usually meet at least once every two years) or by their ambassadors or delegates (who meet regularly in Geneva).

While the WTO is driven by its member states, it could not function without its Secretariat to coordinate the activities. The Secretariat employs over 600 staff, and its experts – lawyers, economists, statisticians and communications experts – assist WTO members on a daily basis to ensure, among other things, that negotiations progress smoothly, and that the rules of international trade are correctly applied and enforced.

The WTO is run Trade negotiations The WTO agreements cover goods, services and intellectual property. They spell out the by its member principles of liberalization, and the permitted exceptions. They include individual countries’ governments. commitments to lower customs tariffs and other trade barriers, and to open and keep open services markets. They set procedures for settling disputes. These agreements are not static; they are renegotiated from time to time and new agreements can be added to the package. Many are now being negotiated under the Doha Development Agenda, launched by WTO trade ministers in Doha, Qatar, in November 2001.

Implementation and monitoring WTO agreements require governments to make their trade policies transparent by notifying the WTO about laws in force and measures adopted. Various WTO councils and committees seek to ensure that these requirements are being followed and that WTO agreements are being properly implemented. All WTO members must undergo periodic scrutiny of their trade policies and practices, each review containing reports by the country concerned and the WTO Secretariat.

Dispute settlement The WTO’s procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly. Countries bring disputes to the WTO if they think their rights under the agreements are being infringed. Judgements by specially appointed independent experts are based on interpretations of the agreements and individual countries’ commitments.

Building trade capacity WTO agreements contain special provision for developing countries, including longer time periods to implement agreements and commitments, measures to increase their trading opportunities, and support to help them build their trade capacity, to handle disputes and to implement technical standards. The WTO organizes hundreds of technical cooperation missions to developing countries annually. It also holds numerous courses each year in Geneva for government officials. Aid for Trade aims to help developing countries develop the skills and infrastructure needed to expand their trade.

Outreach The WTO maintains regular dialogue with non-governmental organizations, parliamentarians, other international organizations, the media and the general public on various aspects of the WTO and the ongoing Doha negotiations, with the aim of enhancing cooperation and increasing awareness of WTO activities.

What is the WTO? World Trade Organization 4 www.wto.org/whatiswto Annual Report 2011 R E V IE

How it all comes together W

The WTO’s top-level decision-making body is the Ministerial Conference which usually meets every two years.

Below this is the General Council (normally ambassadors and heads of delegation in Geneva, but sometimes officials sent from members’ capitals), which meets several times a year in the Geneva headquarters. The General Council also meets as the Trade Policy Review Body and the Dispute Settlement Body.

At the next level, the Goods Council, Services Council and Intellectual Property (TRIPS) Council report to the General Council.

Numerous specialized committees, working groups and working parties deal with the individual agreements and other areas such as the environment, development, membership Decisions are taken applications and regional trade agreements. through various councils and committees, whose Ministerial Conference membership consists of all WTO members. General Council meeting as Dispute Settlement Body General Council General Council meeting as Trade Policy Review Body Dispute Settlement panels

Committees on Trade and Environment Council for Council for Trade-Related Council for Trade and Environment Trade in Goods Aspects of Intellectual Trade in Services Sub-committee on Property Rights Least-Developed Countries

Regional Trade Agreements Committees on Committees on Market Access Trade in Financial Services Balance of Payments Specific Commitments Restrictions Agriculture Working parties on Budget, Finance Sanitary and Phytosanitary Domestic Regulation and Administration Measures General Agreement on Working parties on Technical Barriers to Trade Trade in Services Rules Accession Subsidies and Working groups on Countervailing Measures Trade, debt and finance Anti-Dumping Practices Plurilaterals Trade in Civil Aircraft Trade and Customs Valuation Committee technology transfer Rules of Origin Inactive Import Licensing Committee Relationship between Trade and Investment Trade-Related Investment Measures Interaction between Doha Development Agenda: Trade and Competition Policy Trade Negociations Committee and its bodies

Transparency in Working party on Trade Negotiations Committee Government Procurement State-Trading Enterprises

Special sessions of Services Council / TRIPS Council / Dispute Settlement Body / Agriculture Committee and Cotton Sub-committee / Committee / Trade Plurilaterals and Environment Committee Information Technology Negotiating groups on Agreement Committee Market Access / Rules /

* All WTO members may participate in all councils and committees, with the exceptions of the Appellate Body, Dispute Settlement panels and plurilateral committees.

World Trade Organization What is the WTO? Annual Report 2011 www.wto.org/whatiswto 5 a Understanding A global membership the WTO

China was the world’s leading merchandise exporter in 2010. The WTO currently The United States was the world’s has 153 members leading merchandise importer in 2010. accounting for almost 90 per cent of world trade.

The EU was the world’s leading supplier of services in 2010. Syria became the latest country to seek WTO membership in 2010.

Membership of the WTO (as of 31 December 2010)

Member* Year of accession Member Year of accession Member Year of accession Member Year of accession Albania 2000 Chile 1995 Gabon 1995 Kuwait 1995 Angola 1996 China 2001 The Gambia 1996 Kyrgyz Republic 1998 Antigua and Barbuda 1995 Colombia 1995 Georgia 2000 1999 1995 Congo 1997 1995 Lesotho 1995 2003 Costa Rica 1995 Ghana 1995 Liechtenstein 1995 Australia 1995 Côte d’Ivoire 1995 Greece 1995 2001 Austria 1995 2000 Grenada 1996 1995 Bahrain, Kingdom of 1995 1995 Guatemala 1995 Macao, China 1995 Bangladesh 1995 Cyprus 1995 Guinea 1995 Madagascar 1995 Barbados 1995 Czech Republic 1995 Guinea Bissau 1995 Malawi 1995 Belgium 1995 Democratic Republic Guyana 1995 Malaysia 1995 Belize 1995 of the Congo 1997 Haiti 1996 1995 Benin 1996 1995 Honduras 1995 Mali 1995 Bolivia, Plurinational State of 1995 Djibouti 1995 Hong Kong, China 1995 1995 Botswana 1995 Dominica 1995 1995 Mauritania 1995 Brazil 1995 Dominican Republic 1995 1995 Mauritius 1995 Brunei Darussalam 1995 Ecuador 1996 India 1995 Mexico 1995 Bulgaria 1996 Egypt 1995 1995 Moldova 2001 Burkina Faso 1995 El Salvador 1995 Ireland 1995 Mongolia 1997 Burundi 1995 1999 Israel 1995 Morocco 1995 Cambodia 2004 European Union 1995 Italy 1995 Mozambique 1995 Cameroon 1995 Fiji 1996 Jamaica 1995 Myanmar 1995 Canada 1995 Finland 1995 Japan 1995 Namibia 1995 Cape Verde 2008 Former Yugoslav Jordan 2000 Nepal 2004 Central African Republic 1995 Republic of Macedonia 2003 Kenya 1995 1995 Chad 1996 France 1995 Korea, Republic of 1995 New Zealand 1995

* Members are mostly governments but can also be customs territories.

Members and observers World Trade Organization 6 www.wto.org/members Annual Report 2011 a R

Joining the WTO E V IE The WTO is open to states or customs In his second Annual Report on WTO The value of W territories with full autonomy over their Accessions issued in December 2010, the foreign economic relations. To join the Director-General noted the strong post- merchandise and WTO, a government has to bring its accession trade performance of the 25 services trade of economic and trade policies in line with recently-acceded members (RAMs). In the WTO rules and principles, and negotiate period 1995-2009, the value of their recently-acceded with individual trading partners on specific merchandise and services trade grew at members grew concessions and commitments that it will average annual rates of 13 per cent and apply to its trade in goods and services. It 11 per cent respectively, much faster than faster than the can take many years to become a WTO the respective global growth rates of 7 per world average member, which requires the full support of cent and 8 per cent. In addition, the RAMs’ the existing membership. However, the share of world merchandise trade doubled from 1995 to 2009. accession process is designed to ensure from 6 per cent to 12 per cent (from that new members are able to participate US$ 695 billion to US$ 3,374 billion) fully in the multilateral trading system from during that period. the outset. Several accession negotiations are poised Although no new members joined the for conclusion in 2011. Accessions of least- WTO in 2010, progress was made in many developed countries (LDCs) would be an of the accession negotiations under way. important contribution by the WTO to the The Working Party on the Accession of Fourth United Nations Conference on the the Syrian Arab Republic was established, Least-Developed Countries (LDC-IV) in bringing to 30 the total number of Istanbul, in May 2011. Technical governments seeking WTO entry. Steps assistance and outreach activities, were taken to enhance the transparency including visits to acceding governments of the accession process, including more by the Working Party Chairs, will help build frequent meetings of the Informal Group capacity on substance, process and on Accessions and the introduction of a procedures, and raise awareness of the newsletter service for acceding governments benefits of accession. The WTO is also to provide information, request feedback working to establish an Accessions and assist in the planning and preparations Commitments Database to assist members for accession meetings and negotiations. and acceding governments in retrieving information related to commitments across all completed accessions.

Member Year of accession Member Year of accession Governments seeking to join the WTO 1995 Solomon Islands 1996 (as of 31 December 2010) Niger 1996 1995 Afghanistan* Lebanese Republic Nigeria 1995 1995 Algeria Liberia, Republic of* 1995 Sri Lanka 1995 Andorra Libya Oman 2000 Suriname 1995 Azerbaijan Montenegro Pakistan 1995 Swaziland 1995 Bahamas Russian Federation Panama 1997 1995 Belarus Samoa* 1996 1995 Bhutan* São Tomé and Principe* Paraguay 1995 Chinese Taipei 2002 Bosnia and Herzegovina Serbia Peru 1995 Tanzania 1995 Comoros* Seychelles 1995 Thailand 1995 Equatorial Guinea* Sudan* 1995 Togo 1995 Ethiopia* Syrian Arab Republic 1995 Tonga 2007 Iran Tajikistan Qatar 1996 Trinidad and Tobago 1995 Iraq Uzbekistan Romania 1995 Tunisia 1995 Kazakhstan Vanuatu* Rwanda 1996 Turkey 1995 Lao People’s Democratic Yemen* Saint Kitts and Nevis 1996 Uganda 1995 Republic* Saint Lucia 1995 Ukraine 2008 * Least- Saint Vincent United Arab Emirates 1996 and the Grenadines 1995 United Kingdom 1995 , Kingdom of 2005 United States of America 1995 Senegal 1995 Uruguay 1995 Sierra Leone 1995 Venezuela, Bolivarian Republic of 1995 Singapore 1995 Viet Nam 2007 Slovak Republic 1995 Zambia 1995 1995 Zimbabwe 1995

World Trade Organization Members and observers Annual Report 2011 www.wto.org/members 7 A year in review The WTO’s reports on global trade developments in 2010 showed that, despite the depth of the global crisis and rising unemployment, WTO members and observers had by and large continued to resist domestic protectionist pressures and kept markets open.

Trade Implementation and Dispute negotiations monitoring settlement Detailed talks in Geneva in 2010 failed In 2010 the General Council continued WTO members filed a total of 17 new to bridge the relatively few, but to oversee the progress of the Doha disputes in 2010, compared with 14 in important, outstanding issues to Round, reviewed WTO accession 2009. However, the number of new conclude the Doha Development negotiations and conducted a review disputes in recent years is well down Agenda negotiations. Nevertheless, at of WTO activities on the basis of from the early years of the last decade, the stocktaking meeting in March annual reports from its subsidiary with a peak of 37 disputes filed in 2002. 2010 every member expressed strong bodies, which are responsible for By the end of 2010, 419 disputes had commitment to the mandate of the monitoring members’ implementation been filed since the WTO’s creation in Doha Round and its conclusion. of WTO agreements. WTO members 1995, the most active users of the agreed that the next session of the system being the United States (97), At this meeting, the Chairs of all the Ministerial Conference should be held the European Union (82), Canada (33), negotiating bodies provided factual in Geneva in December 2011. Brazil (25), Mexico (21) and India (19). reports, identifying areas of progress as well as gaps which remained. Members Regional Trade Agreements (RTAs) The WTO’s Dispute Settlement Body agreed that, where the gaps were clear, notified to the WTO continued to be (DSB) met 13 times in 2010, establishing political decisions would be needed as monitored by the Committee on RTAs. In six panels to adjudicate seven new cases. part of the final package. Where the extent 2010, the WTO received 26 new (Where two or more complaints relate to of the gaps was less clear, further notifications involving 18 RTAs. A key the same matter, they are normally technical work would be required before feature noted by the Committee is that adjudicated by a single panel.) The DSB political decisions could be taken. RTAs are becoming more comprehensive, also adopted five dispute panel reports with provisions on market opening in and two Appellate Body reports. One In November, at their respective summits, services and in other areas in addition to mutually agreed solution was notified to leaders of the Group of 20 countries and provisions for reducing barriers to trade in the WTO in 2010. of the Asia-Pacific Economic Cooperation goods. All WTO members except Mongolia forum, as well as African trade ministers, are members of one or more RTA (some Three appeals of panel reports were filed identified 2011 as a critically important belonging to as many as 20). with the Appellate Body in 2010. One ‘window of opportunity’ and signalled Appellate Body report was circulated strong political resolve to engage in During 2010 the Trade Policy Review during 2010. This concerned a dispute comprehensive negotiations. Accordingly, Body reviewed the trade policies and about measures imposed by Australia an intensified work programme from early practices of 19 WTO members. Five regarding the importing of apples from January 2011 was proposed by the Chair of comprehensive reports on global trade New Zealand. The report brought to 101 the Trade Negotiations Committee (TNC), developments in 2010 were prepared by the number of reports circulated by the Pascal Lamy, and by Chairs of negotiating the WTO Secretariat. These showed that, Appellate Body since the creation of the bodies, and was endorsed by WTO despite the depth of the global crisis and WTO in 1995. members at the November TNC meeting. rising unemployment, WTO members and observers had by and large continued to resist domestic protectionist pressures and kept markets open.

See page 14 See page 28 See page 84

World Trade Organization 8 Annual Report 2011 REVIEW 9 TO ’s ’s in 2010 in TO TO TO inTO 2010 ay ’s dispute settlement ’s pen D rogramme in 2010 TO ublic Forum at the W hairs P academic institutions in developing countries were inaugurated in the W C 18 18 agreements trade regional new W the to notified were 3,000 people attended the W 17 trade disputes were brought the to W mechanism in 2010 337 trade-related technical assistance activities were provided the by W 14 Did you know? you Did 1,500 participants from a wide variety of backgrounds attended the P 2010 second O Understanding Understanding WTO the hairs hairs. eneral C C G TO TO irector- D aunching ceremonies also L ay ay 2010 the M rogramme, which provides dedicatedrogramme,provideswhich See page 120 page See he programme aims to assist academic academic assist to aims programme he n P support to teaching, outreach activities research by 14 universities and developinginstitutionsresearch in and countries. took place during the year of the at 10 14 institutions hosting W formally launched the W T institutions in providing students with policyunderstandingdeepertrade a of contributionthe enhance to and issues, and analysis the to institutions these of formulation of national trade policies. The WTO’s annual placetheWTOat September,in Public attracting Forum took varietywideparticipants 1,500 a overfrom of backgrounds. The forum, whose theme was ‘The Forces Shaping focused World Trade’, on how international developments in economic the affecting landscape the multilateral trading are system and the WTO. In regional November outreach 2010, two workshops were for held civil society Africa, in and in Lima, Cape Peru. The WTO Town, also held South two parliamentarians in 2010, regional in and in Mexico City. Singapore workshops for The WTO opened its doors to the public for the 3,000thanMorepeople second September2010. time on localthefrom Genevacommunity cameto Sunday 19 discover what goes on behind the scenes at the WTO and to member representatives. meet its staff and I Outreach

rganisation O ) began a TO agreements o-operation and C OECD rade initiative, which T and theTO id for A conomic E evelopment ( See page 106 page See n 2010 the 2010 W n for D World Trade Organization Annual Report 2011 I monitoring and evaluation of the exercise Building capacity trade aims to help develop developing the trade-related countries skills infrastructure and needed to and implement benefit from W place in put to 2010 in continued WTO The measures designed to further improve the content and delivery of assistance WTOand training programmes. technicalThe aim of these programmes is to help WTO members gain a better understanding of their rights and multilateral obligations within trading the strengthen their capacity to deal with system,the challenges emerging and from it. During the year, to the WTO undertook 337 technicalassistance activities in WTO member Geneva countries and regions. andThe in programme continued to place particular emphasis on Africa providing and to least-developed countries. assistance to As part developing of countries have been asked to the complete self-assessment evaluation questionnaires exercise, and to help in the stories preparation describing of what case is where working improvements and are evaluation needed. exercise underpins The the GlobalReview Aid which of for Trade, isto Third July 2011. be held at the WTO on 18-19 and to expand their trade. Understanding A message from the WTO the WTO Director-General Pascal Lamy

As I travel the world, I am often asked the question ‘When are we going to conclude the Doha Round?’ It is a very reasonable question of course but it’s not one that elicits a very simple answer. In fact, what I always like to remind the person asking the question is that the World Trade Organization is about much more than just the Doha Round.

The WTO has in place a comprehensive set of trade rules that are the result of eight rounds of negotiations concluded since 1948 when the General Agreement on Tariffs and Trade was first signed. These rounds have gradually reduced trade barriers and constructed a set of rules to address the evolving needs of international trade. Until the Kennedy Round of 1967, the major focus was on reducing tariffs.

Since then there have been a number of new agreements in areas ranging from technical barriers to trade to customs valuation. The number of subject areas covered by the agreements has also increased, with the inclusion in more recent years of services, intellectual property and agriculture. In 1997, WTO members negotiated three individual agreements on financial services, telecommunications and trade in information technology products. A plurilateral agreement on government procurement is also in place.

All of these agreements need to be monitored to ensure that WTO members are properly implementing the rules they have signed up to. And this is the work that the WTO undertakes throughout the year in committees and other groupings, providing members with an opportunity to openly discuss their trade practices and their areas of concern in a transparent and predictable manner. The WTO also performs an important role of global trade monitoring. As well as reviewing the trade policies and practices of individual members on a regular basis, the WTO produces comprehensive reports on global trade developments. Trade helped In 2010, we produced five such reports. Three of these, covering trade and investment the world escape measures taken by the G-20 countries, were prepared jointly with two of our fellow recession in 2010 international organizations, the Organisation for Economic Co-operation and Development in Paris and the United Nations Conference on Trade and Development here in Geneva. but the hangover The other two reports covered measures by all WTO members and observers taken in from the financial response to the financial crisis of 2009. crisis is still with us. These reports confirmed that WTO members and observers had largely resisted the temptation to introduce protectionist measures and had kept markets open despite the Pascal Lamy, Director-General intense pressure of the economic crisis and rising unemployment. Although warning of potential dangers still to come as unemployment remains high and tensions mount over global economic imbalances, the reports noted a significant increase in the number of new measures to facilitate trade, especially by reducing or temporarily exempting import tariffs and by streamlining customs procedures.

Governments appear to have learned the lessons from the past, with a clear rejection of the ‘beggar-thy-neighbour’ protectionism that had such a disastrous effect in the Great Depression of the 1930s. The reaction to the global crisis this time is a clear validation of the rules-based multilateral trading system and its ability to keep protectionist tendencies in check.

As we have recently reported, world trade bounced back in 2010 with a record-breaking 14.5 per cent surge in the volume of exports for the year, enabling global trade to recover to its pre-crisis levels. The figures reveal how trade helped the world escape recession in 2010 but the hangover from the financial crisis is still with us and we must continue to remain vigilant in resisting protectionist pressures and in keeping markets open.

For this year, we are forecasting a more modest increase, of 6.5 per cent, as the world comes to terms with the effects of recent events such as the earthquake and tsunami in Japan which have had such tragic consequences. Such an increase in trade would be perfectly in line with the 6 per cent average yearly increase in trade recorded between 1990 and 2008.

WTO Director-General World Trade Organization 10 www.wto.org/dg Annual Report 2011 REVIEW 11 arch ay ctober ovember Events of 2010 of Events January Director-Generalattends in Davos, Switzerland. WTO establishes chairs at 14 universities. M WTO launches annual Essay Economists.Award for Young Doha Round stocktaking week for senior officials takes place. M Workshop and on Aid for Trade Development Finance takes place Geneva. in Syria becomes the latest country to seek WTO membership. June Director-General participates in summitG-20 Canada. in Toronto, July The WHO, WIPO and WTO hold joint symposium on access to medicines. “WTO Honour Day” held at Shanghai Expo. September WTO holds second Open Day, welcoming some 3,000 visitors. WTO Public Forum takes place in Geneva, hosting about 1,500 participants. Director-General participates at Millennium Development Goals Summit in New York. Director-General participates in Global Services Summit in Washington. O WTO marks World Statistics Day with release latest of (20.10.2010) trade data. N Director-General participates in in Seoul,G-20 Republic Korea. of WTO Director-General www.wto.org/dg amy L ascal World Trade Organization Annual Report 2011 P Thatoverwhytheis coming months willI be consulting with the membership tosee how we can build upon the product ten of years’ work and keep alive the ambition that lies at theheart theDoha of negotiations. seeitasI dutyour keepfaithtoRound thata aims in to create opportunities and membership, especially among the to poorest developing countries. we haveTogether, the promote growth responsibility and to preserve not jobsonly the essence of acrossthe Doha Round but thethe future the of multilateralsustainable trading system as a whole. whole WTO So what do we do next? There is startingstoppingscratchgeneralandfrom isagain Nor driftagreementaway. just Round Doha the amongletcannot our membership that we theanswer as the current stumbling block will only reappear at latera date. And nor can we carry on regardless, pretending that it’s ‘business as usual’. For the first time since themembers launchhad the opportunity of to consider the entire the Doha package, including Doha all market Development Round regulatorythe asareasagenda.on Easteraccesswellthe areasThe packageshowedas in 2001, WTO which gaps remain in members’ positions, but it is my view that in one particular area of the for that wide so aretariffgaps negotiationsthe the– industrial reductions – goodson moment they are unbridgeable. The differencesprofoundly political, rendering are compromise impossible without not a shift in position. technical or procedural, but Which brings us once again to the Doha Round. andHere the 2010, late newsin way under over programmeintensified good. work got Althoughlessbeenan the last year has although chairs of the negotiating groups produced documents in Apriloutlining 2011 the latest state of play in each of their negotiating areas, by Easter it was clear that the Doha Round had come to an impasse. In 2010 we In made2010 a significantextension to our outreach activitiesby launching a WTO Chairs Programme aimed at enhancing the analysis of trade policy issues by academic institutionsinstitutions beeninauguratedthedevelopinghave into incountries. 14 far, So Programme. We also continued governmental organizations, to parliamentarians and other communities. hold workshops tailored to the needs of non- Another on-going activity of the WTO is our active support for developing we undertookcountries.2010 over 300In training activities in Geneva and in our member countries aimed at improving understanding of WTO rules and helping developing countries build the expertise needed to benefitparticular from effort was WTO made agreements to assess and the international bringsof numbertogetherorganizations a attempt impactboost an productive to in expand of the their Aid for trade. Trade initiative, A which GlobalReviewThird the capacities indevelopingculminate countries.willin exercise This to be Aidof held for Trade at the WTO in July. The WTO a alsoslight saw increasein 2010 in the number of disputes brought by WTO members to our dispute settlement system. This system gives members the opportunity to seek a judicial review of cases where agreementthey orbelieve a anothercommitment memberit has is made violatingin the an WTO.implementedmeasure a members. WTOIf all Disputes SettlementDispute consists of which Body, are considered by the by a WTO member recommendationsthe of ruling. Failure toevendo mayso result is thein party bringing the found to case fall being outside given the the green rules, light systemgives the WTO the necessary to clout itto enforce the trade rules impose to which members trade must sanctions. swiftly This signed up and is a central pillar the of multilateral robust follow trading system. settlement the Director-General WTO Open Day WTO opens its doors to the public

The WTO opened its doors Under a late summer sun, more than WTO interpreters offered an insight into to the public for the second 3,000 people from the local Geneva their profession, and during a live debate community came to discover what goes on the theme, ‘Do you speak Globish? time on Sunday, on behind the scenes at the WTO, The art of international communication’, 19 September 2010. to meet its staff and member members of the public had the chance Throughout the day, representatives, and to sample cuisine to try their own interpreting skills. from around the world. Meanwhile, the WTO health service a variety of entertainment focused on travel health, including and educational and cultural The WTO opened its doors to the public vaccinations, prevention of mosquito- activities were on offer at at 10 am and welcoming remarks were transmitted diseases, jet lag and the made by WTO Director-General Pascal biological clock, and the various ‘tricks’ this family-oriented event. Lamy, Cantonal Councillor Isabel Rochat, for dealing with travel sickness. Geneva Mayor Sandrine Salerno, and the Chair of the WTO General Council, Visitors were entertained by the Swing Ambassador John Gero. Solicitors, musicians from the local and international community, while artist A short film about the WTO and how Alex Flemming presented one of his works it affects the lives of people around entitled ‘Uniplanetarisches System in the world was shown at regular intervals Memoriam Galileo Galilei’, an installation in the Council Room, the main meeting representing a set of rotating globes. place for the WTO’s 153 members. There was plenty on offer for children too, Two public debates were held, one with a storyteller, a bouncy castle, and fun on ‘International Geneva’ and the other activities with an environmental theme on ‘The first fifteen years of the WTO, organized by the charity ‘J’aime ma planète’. what has been accomplished and what comes next?’. An international buffet on the terrace overlooking the lake gave a flavour of Guided tours of the WTO’s historic the worldwide membership of the WTO, lakeside headquarters revealed the many offering specialities from 19 member works of art donated by countries over countries. With 2010 declared the the years, including gifts to the International International Year of Biodiversity by Labour Organization, which occupied the United Nations, all proceeds from the Centre William Rappard from its the buffet and sale of lottery tickets – inauguration in 1926 until 1975. The tour CHF 19,723 – were donated to the included exhibits on the WTO’s role in the association ‘J’aime ma planète’, whose protection of the environment, on the role mission is to raise awareness, educate trade plays in agriculture and on the role and act to protect the planet and promote of trade for least-developed countries. sustainable development. The public were able to learn more about how international trade works (and where In the run-up to the Open Day the WTO their favourite jeans really come from) launched a poetry competition on and discover the human face of the WTO international trade, which attracted through video profiles of staff. Visitors 70 entries from aspiring poets of all ages were able to see the Director-General’s from 27 countries. The three winners, office and the library, while staff of one for each of the WTO’s official the Human Resources Division described languages, announced at the Open Day the WTO recruitment process and were from Côte d’Ivoire (French), Saint the career possibilities available. Lucia (English) and Guatemala (Spanish).

WTO Open Day World Trade Organization 12 www.wto.org/openday Annual Report 2011 We would like to thank everyone who visited us and made this day a great success.

World Trade Organization Annual Report 2011 13