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ÉCLAIRAGES | PERSPECTIVES GLOBAL GOVERNANCE OF THE WORLD TRADING SYSTEM CHINA, Huaibei: A Chinese poultry seller waits for customers at her stall in a market in Huaibei, on 30 September 2010. China won a rare victory at the WTO against the USA after a panel ruled that US restrictions on Chinese poultry imports are illegal. AFP/CHINAXTRA. LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013 7
ÉCLAIRAGES | PERSPECTIVES ÉCLAIRAGES | PERSPECTIVES INTRODUCTION Richard Baldwin, Professor of International Economics; Co-Director, Centre for Trade and Economic Integration CAMBODIA, Phnom Penh: US Secretary of State Hillary Clinton joins hands with other foreign ministers during the opening of the East Asia Summit held on the sidelines of the 45th Annual Ministerial Meeting of the Association of Southeast Asian Nations (ASEAN) on 12 July 2012. AFP/HOANG DINH Nam. World trade governance is at an historical crossroads. The world’s most important trade talks – the WTO’s Doha Round – have slipped into a coma while key nations play a waiting game. Traditional approaches – practices that worked wonders in the 20th century – have failed in the new century. Nevertheless, trade liberalisation is as popular as ever. While some crisis-linked barriers have been erected, these are not of first-order importance – or at least not yet. The new century has seen massive liberalisation of trade in goods and services – much of it by nations that disparaged trade liberalisation for decades. But unlike last century, almost none of this has occurred under the WTO’s aegis. By default, the world is pursuing the regional and bilateral road. It is increasingly obvious that the bilateral/regional road and the multilateral roads are not parallel. They are diverging leading world trade governance towards a fragmented and exclusionary system dominated by something akin to the 19th century Great Powers arrangement. To date, these changes seem more like challenges than threats. The key players believe the world trade system will continue to be anchored by the WTO’s shared values, such as reciprocity, transparency, non-discrimination, and 8 LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013
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