Olga Ponomareva on the World Trade Organization crisis

The expert noted that the US trade policy expanded beyond the limits of multilateral commitments and agreements, primarily in terms of the level of import tariff rates that was fixed in the WTO. Blocking of the key element function of the multilateral trade regulation system within the WTO, i.e. the Dispute Settlement Body, has become the main barrier to the normal organization activity.

Olga Ponomareva also emphasized the impact of sanctions policy against Russia. Moreover, modes of the secondary sanctions have further weakened its significance. More and more controversial aspects of trade cooperation between the countries have to be resolved beyond previously agreed mechanisms, at the regional level, within trade and sectoral deals. Recently, the US has been pushing its partners towards this format of cooperation. Today, the WTO operates primarily as a platform for discussing issues of trade regulation in the modern world, taking into account the goals and objectives of sustainable development.

The expert noted that issues within the WTO had been brewing for a long time, contradictions increased between developed and developing countries, the system required reform, and in recent years WTO members have been trying to agree on approaches in this field. Support for multilateral system and the WTO is reported in a declarative manner at the BRICS, SCO and other organizations and forums.

Certain processes of formal interaction are also taking place in the Dispute Settlement Body (dispute resolution procedures are initiated, decisions of the arbitration panel are developed, but without the possibility of review by the Appellate Body); recently, China, Russia and other countries have resorted to the WTO DSB mechanisms.