Dr. Stoeckel identified the problems with the current trade system, namely: (a) decline of multilateralism, rising protection and the failure of the Doha negotiation; (b) three functions of WTO are not working, namely negotiating, monitoring trade policies and dispute settlement; (c) calls for ‘root-and-branch” reform; (d) rot in the system started long ago; and (e) lack of appreciation of causes – hence some solutions not advanced by reform initiatives by G20. Dr. Stoeckel further elaborated on what has caused the trade system problems, which he said included the following: (a) the rules themselves – too many inconsistencies, contradictions, ambiguities and exemptions, as well as the issue of reciprocity; (b) mission creep – the agenda is too big while the trade rules used to remedy problems they cannot fix, and multilateralism is the strongest when the world is united around a simple clear goal; (c) “new” issues to deal with as things change – digital economy, e-commerce, internet standards and capital flows as driver of trade; and (d) declining hegemony by US and rise of China – the trade war. As the apex regional business organization representing 150 million SMEs across 25 countries, Dr. Stoeckel said that CACCI is advancing the following 15 remedies to fix these problems:

1. Adopt a common simple purpose for the WTO system;
2. Adopt and apply a set of principles to achieve objective;
3. Establish a domestic transparency institution in each domestic capital to assess national self-interest from trade policies;
4. Stop mission creep;
5. Multilateralise all preferential trade agreements;
6. Only permit subsidies that address market failures and externalities;
7. Assess anti-dumping on both a cost and benefit basis;
8. Reassess differential treatment for developing countries;
9. Assess best arrangement for digital economy rules;
10. Reassess intellectual property;
11. Redesign the dispute settlement system;
12. Allow plurilateral agreements only if they are open to all at a later stage;
13. Do not use climate change for protection purposes;
14. Adequately reflect the views and priorities of businesses and SMEs in trade agendas and the WTO;
15. Address shortcomings in the operation of WTO.

Here is the video presentation of the “Achieving a Successful World Trading System” webinar held on October 29, 2021 at 3:00 PM, Taipei Time.