WTO 2.0: Thinking ahead on global trade governance
Richard Baldwin 22 December 2012
The world of international commerce has changed radically over the past years due to the rise of supply-chain trade. This column argues that the WTO has not kept up with the need for new rules governing the intertwining of trade, investment, intellectual property, and service. Bring these rules to the multilateral level will require the establishment of a new international organisation – a ‘WTO 2.0’.
The cross-border flows of goods, investment, services, know-how and people associated with international production networks – call it ‘supply-chain trade’ for short – has transformed the world (Gereffi and Lee 2012). The WTO has not kept pace. It is time to change that, as I argue in CEPR Policy Insight No 64, posted today (Baldwin 2012). Before turning to the governance issue, consider the changes.
WTO, global value chains, WTO 2.0, supply-chain trade