By Lu Gang, Research Team on “Development Trends and Key Issues Relating to WTO Reform”, Research Department of Foreign Economic Relations, DRC

Research Report, No. 370, 2021 (Total 6435) 2021-12-6

Abstract: The evolution trajectory of GATT and WTO shows that the development of multilateral trading system follows two basic laws. First, it is dominated by a small number of major economies with both hard power and soft power, while hard power refers to the scale of the economy and market, and soft power refers to issue-setting and rule-making capabilities. Second, it is driven by the motivation of leading countries to pursue their own interests. At present, major changes in the international economic structure have increased the number of major powers affecting WTO performance. The reform will depend on the rebalancing of powers between the U.S., Europe, China, India and Pakistan, which is difficult to be accomplished overnight. The major powers tend to form plurilateral economic and trade blocs respectively in which they will promote regional trade liberalization and self-made rules. China needs to strike a balance between current and future demands for WTO reform and adopt a “dual-track” and across-the-board strategy, in a bid to push ahead with WTO reform for achieving gratifying results and actively promote regional economic integration to lay a solid foundation for multilateral trade liberalization.

Keywords: WTO, reform, history, prospects