Exclusive: U.S. Has De Facto Left the WTO, Other Members Have to Move Forward: Former WTO DG

Group 1: WTO and Global Trade Dynamics - The WTO Appellate Body has been incapacitated for nearly six years due to the United States blocking appointments, leading to its official shutdown in December 2019 [1] - Pascal Lamy suggests that the WTO must adapt to new trade realities, even without the United States as an active member, indicating a potential future without US participation [2][3] - Lamy emphasizes the need for a venue to resolve tensions between developed and developing countries, highlighting the importance of international trade and division of labor for environmental benefits [6] Group 2: Environmental Challenges and Trade - Lamy stresses the urgency of addressing climate change, noting that 90% of the world's population is affected by environmental crises, necessitating collective action [4] - He argues that international trade can be beneficial for the environment, advocating for a friendly trade environment that protects against environmental degradation [5][6] - The lack of enforceable regulations in global agreements, such as the Paris Agreement, poses challenges for collective action and can lead to trade frictions [7] Group 3: The Role of the United States - The United States has effectively withdrawn from the WTO, undermining decades of trade rules, which complicates the international trade landscape [3][8] - Lamy points out that US protectionism affects only 13% of global imports, suggesting that the global trading system remains solid as long as other economies do not adopt similar measures [18] - The US's controversial withdrawals from international agreements hinder the regulation of international trade processes [8] Group 4: Future of Globalization - Lamy describes the transition from fast globalization to slow globalization, with the overall scale of international trade still rising but at a slower growth rate [16] - He identifies three characteristics of the new normal in the multilateral trading system: weaponization of trade, US protectionism, and the rise of precautionaryism [17][18][19] - China is positioned to play a crucial role in the next stage of globalization, needing to balance macroeconomic rebalancing and exploration of emerging markets [20][22] Group 5: Technological Impact on Trade - Digitalization is influencing the global trade landscape by reducing transaction costs and enhancing service trade growth [24] - However, differences in regulatory systems for data governance create new barriers to services trade, necessitating continuous adjustments by businesses [25] - Building an international digital governance system is essential for the sustainable development of global trade [25] Group 6: Reforming the WTO - Lamy calls for urgent reform of the WTO, highlighting the contradiction of the US participating in decision-making while withdrawing from its commitments [26] - He suggests rebalancing the power structure between WTO members and the Secretariat to improve decision-making efficiency [27] - Promoting trade facilitation in areas such as the environment and e-commerce is essential for the WTO's mission to remove illegitimate trade obstacles [27]