Question

Several different trade organizations provide support and policy guidance to the global community (World Trade Organization, World Bank, European Commission, to name a few). Choose one and identify their purpose, as well as three current policies they are governing with and the goals of such policies. In your opinion, are they currently appropriately guiding global commerce? Why or why not?

Answer 1

Solution :

The WTO in global economic policy-making

An important aspect of the WTO’s mandate is to cooperate with the International Monetary Fund, the World Bank and other multilateral institutions to achieve greater coherence in global economic policy-making. A separate Ministerial Declaration was adopted at the Marrakesh Ministerial Meeting in April 1994 to underscore this objective.

The declaration envisages an increased contribution by the WTO to achieving greater coherence in global economic policy-making. It recognizes that different aspects of economic policy are linked, and it calls on the WTO to develop its cooperation with the international organizations responsible for monetary and financial matters — the World Bank and the International Monetary Fund.

The declaration also recognizes the contribution that trade liberalization makes to the growth and development of national economies. It says this is an increasingly important component in the success of the economic adjustment programmes which many WTO members are undertaking, even though it may often involve significant social costs during the transition.

The Managing Director of the IMF and the Director General of the WTO consult regularly on a range of trade-related issues. TThe IMF Managing Director and the WTO Director-General, together with the President of the World Bank Group participated in a panel on “Leveraging Trade to Reduce Poverty” at the IMF/World Bank Group Spring Meetings in April 2019, led a seminar on “How Global Trade Can Promote Growth for All” at the IMF/World Bank Group Annual Meetings in October 2018, and launched a joint staff paper on “Reinvigorating Trade and Inclusive Growth” in September 2018. The Managing Director also participated in the WTO’s Public Forum in September 2017. Finally, management of both institutions frequently participate in the annual IMF/World Bank/WTO Joint Trade Workshops.

Looking forward, cooperation and consultation between the IMF and WTO will continue to be key, given the increased areas of mutual support and responsibilities between the two institutions. Potential areas of heightened interaction include financial services, trade facilitation, and collaboration on WTO accessions. The IMF strongly supports the role of the WTO in ensuring openness, transparency, and stability in the global trading system, including its role in enforcing trade rules