The World Trade Organisation (WTO) is a supranational governmental body with 164 Member States, which will rise to 166 when East Timor and the Comoro Islands, which have concluded the process of accession to the Organisation, have completed the necessary internal ratification procedures. It oversees trade between Member States, which account for about 97% of world trade in goods and services. There are further 23 countries playing the role of observers.
The WTO was established on 1 January 1995 at the conclusion of the so-called ‘Uruguay Round’ negotiations and succeeds the General Agreement on Tariffs and Trade (GATT). The agreements underpinning the Organisation form the legal framework of the multilateral trade system and are binding on its Members States. The Organisation also has a dispute settlement mechanism created to resolve conflicts between its Member States.
In recent years, however, the WTO has entered a crisis due to the inadequacy of the existing – but now outdated – rules, the lack of rules for new sectors (such as e-commerce) and wide divergences of views among its Member States. This crisis has resulted in malfunctioning of the Organisation’s main activities, including dispute settlement, which led to the blocking of the Appellate Body (December 2019), and was exacerbated by the failure of several Ministerial Conferences (including, most recently, the 11th Buenos Aires Conference, December 2017).
Aware of the importance of trade for global growth and development, as well as for post-pandemic recovery and in today’s difficult geo-political situation, Member States are working for a reform of the Organisation that can ensure a level playing field for all Member States and promote greater inclusiveness and sustainability for world trade.
In this regard, the 12th WTO Ministerial Conference (MC12), held in Geneva in June 2022, was a turning point, as – under the leadership of Director-General Okonjo-Iweala – it surpassed previous Conferences in ambition and results, thus relaunching the role of this pivotal Organisation in the multilateral trade system.
Albeit in a context characterised by a difficult international geopolitical situation and by strong divergences between Member States on the main negotiating chapters, the subsequent 13th WTO Ministerial Conference (Abu Dhabi, 26 February – 2 March 2024) managed to achieve some goals which, although falling short of expectations, were useful to continue the Organisation’s reform path in the post Abu Dhabi era.
World Trade Organization – Home page – Global trade (wto.org)
WTO Ministerial Conferences:
13th Ministerial Conference (January 2024)
12th Ministerial Conference (June 2022)
11th Ministerial Conference (December 2017)
10th Ministerial Conference – December 2015
9th WTO Ministerial Conference – December 2013
Contacts:
Office 9 – DGUE
Common Trade Policy
e-mail: dgue-09@esteri.it