Belief in the multilateral trade system is eroding, and that spells trouble

By Peter Ungphakorn and Robert Wolfe
POSTED FEBRUARY 26, 2023 | UPDATED FEBRUARY 26, 2023

Time flies. It was only last June that the World Trade Organization (WTO) emerged from a morale-boosting Ministerial Conference, hailed as a success simply because members could at least agree on what to do next, often in the vaguest possible terms, and not on everything.

They did strike a deal on curbing harmful fisheries subsidies but even that was gutted of its most important element: tackling subsidies that contribute to overcapacity and overfishing, the top priority of UN Sustainable Development Goal 14 Target 6.

The June success is already a distant memory.

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Are retreats the new pandemic at the World Trade Organization?

By Peter Ungphakorn
POSTED OCTOBER 8, 2022 | UPDATED NOVEMBER 13, 2022

An epidemic of retreats is breaking out at the World Trade Organization (WTO).

On Monday October 10, 2022, WTO members gathered in Evian in France (cross the lake and turn left) to talk about fish. A fortnight later they were back on the Geneva shore to discuss agriculture. Not long after, they talked about “WTO reform”.

There’s even a call to do the same on intellectual property. The list is getting longer. The epidemic could become a pandemic.

Türkiye and EU: appeal-by-arbitration cases leave questions about WTO law

Originally published as
“Alternative to the alternative: Turkey and EU use arbitration for WTO appeals”
and previously as one section in
“Arbitration — the stop-gap when WTO appeals are unavailable”

By Peter Ungphakorn
POSTED AUGUST 30, 2022 | UPDATED SEPTEMBER 26, 2022

Türkiye told World Trade Organization members on August 29, 2022 that it would comply with dispute rulings that said it was violating WTO agreements by giving preferences to locally-produced pharmaceutical products, even though the rulings have not been formally adopted.

So far, the case is unique among WTO legal disputes. It is the first use of appeal-by-arbitration as a route to a second legal opinion on a ruling, while the WTO Appellate Body cannot function.

And because at the time arbitration was the only route open to Türkiye to appeal the case, neither the first-stage “panel” ruling, nor the findings in the appeal, have been formally adopted by the WTO’s membership.

This raises questions about the status of the rulings in WTO law. When a ruling has been formally adopted, governments (and others involved in trade) can assess with a degree of confidence whether similar policies or measures comply with WTO agreements.

When the membership has not adopted a ruling, that confidence is weakened, although some legal experts suggest the difference is small. The US treats non-adoption as significant without explaining why.

Does ‘holding the pen’ give WTO staff too much power over disputes?

By Peter Ungphakorn
POSTED AUGUST 22, 2022 | UPDATED SEPTEMBER 28, 2022

Does the WTO Secretariat have too much influence over WTO dispute settlement rulings? Two experts argue controversially in recent papers that it does, backing their claims with sophisticated analysis of writing styles to detect who might have authored the rulings.

The analysis by Joost Pauwelyn (Graduate Institute of International and Development Studies, Geneva) and Krzysztof Pelc (McGill University, Montreal) also digs down in detail into the reasons behind the role that the Secretariat has been given.

That leads to a discussion covering a wide range of issues, some of them central to the debate about reforming the WTO and its dispute settlement system — including the controversy over whether case history and precedent should have a bearing on new rulings, and to what extent that should be guided by the institutional knowledge of Secretariat staff.

‘Notification and review’ sounds dull but is essential for WTO reform

Posted by Peter Ungphakorn
JULY 18, 2022 | UPDATED JULY 27, 2022

On July 14, 2022, a group of 57 World Trade Organization member governments renewed their effort to strengthen work that is essential for the WTO to functioning properly — transparency.

They circulated the latest version of their proposal on notifications. It’s an activity most people find deadly dull, but without it the WTO’s trading system simply would not work.

The proposal is certainly the least glamorous part of the effort to “reform” the WTO, one of the priorities that WTO trade ministers set for themselves and their Geneva delegations at their June 2022 conference.

WTO members achieve breakthrough, but the tough part is what happens next

See also
The successful WTO Conference saw one big failure: agriculture | Have we just seen the funeral of the WTO ‘single undertaking’? | Our scorecards

By Peter Ungphakorn and Robert Wolfe
POSTED JUNE 30, 2022 | UPDATED JUNE 30, 2022

As a beautiful sun rose over the World Trade Organization’s lakeside headquarters in Geneva on June 17, 2022, exhausted delegates sealed a package of decisions and declarations that would give the beleaguered WTO new direction for the next couple of years.

Much has already been written about the achievement of the 12–17 June WTO Ministerial Conference, after it was extended by almost two days of sometimes chaotic round-the-clock bargaining.

Most of the analysis focuses on what was achieved, often with a sense of relief that the WTO was back on track, mixed with a warning that much still needs to be done.

Perhaps the biggest success was that a package was agreed by ministers, including an Outcome Document — which the previous ministerial conference failed to do.

Often missing is recognition of how hard it was to achieve this limited outcome.

Touch and go at the WTO. Is the director-general’s optimism justified?

By Peter Ungphakorn and Robert Wolfe
POSTED JUNE 9, 2022 | UPDATED JUNE 12, 2022

How many times can a curtain go up and down? This is our second curtain-raiser for the World Trade Organization’s 12th Ministerial Conference, now rescheduled for June 12–15, 2022.

As we wrote when the meeting was postponed in late 2021, the WTO risks disappearing into a chasm of petty procedural wrangling over what to talk about, and how to move forward.

After delays in 2020 and 2021 due to the pandemic, and more recently the threat to multilateralism posed by Russia, the fact of it happening at all will be taken as a success. But have WTO members been able to move closer to significant agreement on anything?

This time our curtain-raiser proposes some benchmarks for assessment. There’s even a scorecard at the end for anyone following along at home.

Alternative to the alternative: Turkey and EU use arbitration for WTO appeals

This has now been republished as
“Türkiye and EU: appeal-by-arbitration cases leave questions about WTO law — Similar to the 50-member ‘Multi-party Interim Appeal Arrangement (MPIA)’, one ruling has been formally adopted, the other not”

Can a WTO member be expelled? No. But …

By Peter Ungphakorn
POSTED MARCH 23, 2022 | UPDATED MARCH 26, 2022

Can a member of the World Trade Organization (WTO) be expelled? The short answer is no. There is no legal means of doing that.

The question arises because of a number of calls to expel Russia, to suspend its membership or to suspend its ability to act in the WTO, in response to its invasion of Ukraine.

Those three are not exactly the same. The first two — expulsion or suspending membership — are clearly legal issues. They require decisions by the WTO’s membership.

The response from almost all experts in WTO trade law is simple: there are no provisions in the WTO agreements that would allow expulsion or suspension.

US politicians call for trade action against Russia in the WTO

Painting (detail) by Chris Edmund © used with permission

See also:
List of measures announced or proposed
that come under the WTO system, periodically updated
Can a WTO member be expelled? No. But …

By Peter Ungphakorn
POSTED FEBRUARY 28, 2022 | UPDATED MARCH 4, 2022

Two senior US politicians announced on February 25, 2022 that they were introducing legislation to suspend World Trade Organization terms in US trade with Russia and to seek expelling Russia from the WTO.

Lloyd Doggett, chair of the House of Representatives Ways and Means subcommittee on health, and Earl Blumenauer, his counterpart on the subcommittee on trade, proposed the bill following Russia’s “unprovoked invasion of Ukraine”.

Since then, at least three similar bills have been proposed in the US Senate.

Meanwhile, Ukraine and Canada have actually implemented action against Russia within in the WTO system, and the EU has said it is considering its own action.

The Doggett and Blumenauer bill would make it easier for the US to impose trade sanctions against imports of Russian goods, in addition to the commercial, financial and personal sanctions the US and its allies have already initiated. That includes new EU sanctions in trade with Belarus (not a WTO member).

The bill would also “seek the suspension of the Russian Federation’s membership in the WTO”, a more difficult prospect.