As discussions on reforming the World Trade Organization (WTO) gain momentum, the South Korean government and trade experts are assessing the country's response strategies. This involves analyzing member states' proposals on key issues such as decision-making, development, and fair competition, while seeking ways to reflect the interests of domestic industries and businesses.
The Ministry of Trade, Industry and Energy announced on September 14 that it will hold a 'WTO Reform Forum' with experts from various fields, led by Kwon Hye-jin, Director of the Trade Negotiation Bureau, until September 15. Participants will include officials from the ministry, the Korea Institute for Industrial Economics and Trade, the Korea Institute for International Economic Policy, the Korea Development Institute, the National Diplomatic Academy, as well as WTO and international trade experts from academia and the legal sector. Discussions will focus on decision-making on the first day and development, fair competition, and fundamental issues on the second day.
WTO reform is essential for restoring the functionality and credibility of the multilateral trade system. Discussions that have been sporadic over the past decade began to take shape last June when the Norwegian ambassador in Geneva was appointed as the reform coordinator, focusing on decision-making, development, and fair competition.
During the 14th WTO Ministerial Conference held in Cameroon in March, reform was a central agenda item. Discussions led by ministerial coordinators from six countries, including South Korea, reached a consensus on the necessity of reform and the direction of future discussions. However, due to the failure to reach an agreement on other issues, such as the e-commerce moratorium, a final agreement was not adopted.
Since May, the WTO has been advancing specific reform discussions based on proposals submitted by member countries. Monthly meetings have been held since July to continue discussions in four areas: decision-making, development, fair competition, and fundamental issues.
The weakening of the WTO's functionality is also evident in its dispute resolution mechanism. The Appellate Body, which hears trade disputes between member countries, is unable to function due to vacant positions. The last term of the sitting members ended on November 30, 2020. The limitations on the dispute resolution function under trade norms highlight the need to restore trust in the multilateral trade system.
In response to the changing trade environment, the Ministry of Trade, Industry and Energy launched the WTO Reform Forum in July. The upcoming meetings will review key proposals from major countries in the four areas and discuss South Korea's future response direction. The ministry plans to utilize the feedback from these meetings to develop response strategies and continuously gather opinions on WTO reform from academia and industry.
Kwon Hye-jin stated, "WTO reform is a crucial process for restoring the functionality and credibility of the multilateral trade system in a rapidly changing global trade environment. As a country that has grown through exports and openness, we will actively participate in the reform discussions to faithfully reflect the interests of our industries and businesses." She added, "We will closely analyze proposals from major countries and specific issues to refine our future response strategies."
* This article has been translated by AI.
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