GENEVA 15-19 Sep 2010 World Trade Organization opens its doors

The World Trade Organization, the 153-nation body that deals with the rules of trade between nations, holds a public relations exercise at a time when it needs to explain itself. The Doha Round of negotiations, aimed at fostering global trade, is on indefinite hold after 15 years, and the WTO has irked most of Europe by ruling in favor of United States aerospace company Boeing over its European rival. The event starts with a Public Forum 15-17 Sep, followed by the Open House on Sep 18.

The Public Forum provides an opportunity for governments, non-governmental organizations, academics, businesses and students to come together to discuss issues regarding the multilateral trading system. The theme of this year's Forum is “The Forces Shaping World Trade.”

WTO Director-General Pascal Lamy told the Trade Negotiations Committee on 26 Mar: "While there is certainly disappointment that we are not closer to our goal, I have not detected any defeatism," but news stories about trade suggest the global economic downturn is nudging countries towards a protectionist mind set. It provides a handy excuse for intractability to countries locked in Doha Round disputes over subsidies to their favored industries or economic sectors. The Director-General takes issue with an idea gaining ground that the ticket to economic recovery is increasing exports. He pointed out in July that unless countries also increase imports, it is nonsense to assume increasing exports is a workable solution.

US agricultural subsidies and European subsidies to aerospace manufacturer Airbus have been long-time disputes in the negotiations. The WTO ruled recently that state aid given over many years to European-owned Airbus was illegal. Airbus, backed by the European Union, has lodged a WTO complaint against Boeing, saying the US aerospace giant gets subsidies through orders for development and supply of military equipment for Washington. European governments insist the principle of reimbursable subsidies is not contrary to WTO rules.

The World Trade Organization absorbed and expanded the 1947 General Agreement on Tariffs and Trade in 1995.

(Last updated Jul 2010)

RELATED READING:

2010 WTO Public Forum web
http://www.wto.org/english/forums_e/public_forum10_e/public_forum10_e.htm

http://www.wto.org/english/forums_e/open_day_e/open_day10_e/open_day10_e.htm