World Trade Report

Climate change is having a profound impact on people’s lives across the world. Mitigating and adapting to climate change will require major economic investment and coordinated action to transition to a sustainable, low-carbon economy. The World Trade Report 2022 explores the complex interlinkages between climate change, international trade, and climate and trade policies. Although international trade generates greenhouse gas emissions which contribute to climate-related natural disasters, it can also play an essential role in helping countries reduce emissions by increasing the availability and affordability of environmental goods, services and technologies. International trade can also play a key role in helping countries adapt to the impacts of climate change and build future resilience. The World Trade Report 2022 shows how international trade and trade rules can contribute to addressing climate change. Ensuring trade and climate change policies are mutually supportive requires global coordination and transparency about government measures. The WTO already plays an important role in helping countries tackle climate change by maintaining a predictable trading environment underpinned by WTO rules that allow for international trade in critical goods and services needed to cope with the consequences of climate change and to reduce emissions. Further international cooperation at the WTO could strengthen the mutual supportiveness of trade and climate change policies so that the world is better equipped to transition to a low-carbon economy.

In the digital age, a growing number of governments have adopted policies aimed at boosting growth through innovation and technological upgrading. The World Trade Report 2020 looks at these trends and at how trade and the WTO fit with them. A defining feature of government policies adopted in recent years has been their support of the transition towards a digital economy. Trade and trade policies have historically been important engines for innovation. In particular, the multilateral trading system has contributed significantly to the global diffusion of innovation and technology by fostering predictable global market conditions and by underpinning the development of global value chains. As data become an essential input in the digital economy, firms rely more on intangible assets than on physical ones, and digital firms are able to reach global markets faster without the amount of physical investment previously necessary in other sectors. Success in the digital economy will depend on openness, access to information and communication technology (ICT) goods and services, collaboration on research projects, and the diffusion of knowledge and new technology. The World Trade Report 2020 shows that there is a significant role for international cooperation to make the pursuit of digital development and technological innovation more effective, while minimizing negative spill-overs from national policies. The WTO agreements, reached a quarter of a century ago, have proved to be remarkably forwardlooking in providing a framework that has favoured the development of ICT-enabled economies across all levels of development. Further international cooperation at the WTO and elsewhere would enable continued innovation and reduce trade tensions to help international markets function more predictably.

Trade has always been shaped by technology but the rapid development of digital technologies in recent times has the potential to transform international trade profoundly in the years to come. The World Trade Report 2018 examines how digital technologies – and in particular the Internet of Things, artificial intelligence, 3D printing and Blockchain – affect trade costs, the nature of what is traded and the composition of trade. It estimates how global trade may be affected by these technologies over the next 15 years.

This report examines the participation of small and medium-sized enterprises (SMEs) in international trade, how the international trade landscape is changing for SMEs, and what the multilateral trading system does and can do to encourage more widespread and inclusive SME participation in global markets.

The World Trade Report 2014 looks at how four recent major economic trends have changed how developing countries can use trade to facilitate development: the economic rise of developing economies, the growing integration of global production through supply chains, the higher prices for agricultural goods and natural resources, and the increasing interdependence of the world economy. It also looks into what role the WTO can play.

Regulatory measures for trade in goods and services raise new and pressing challenges for international cooperation in the 21st century. The World Trade Report 2012 examines why governments use these non-tariff measures and to what extent such measures may distort international trade. Non-tariff measures (NTMs) can serve legitimate public policy goals, such as protecting the health of consumers, but they may also be used for protectionist purposes. The Report reveals how the expansion of global production chains, climate change and the growing importance of consumer concerns in richer countries affect the use of NTMs. It also reports that such measures represent the main source of concerns for exporters. The focus of the Report is on technical barriers to trade (TBT) regarding standards for manufactured goods, sanitary and phytosanitary (SPS) measures concerning food safety and animal/plant health, and domestic regulation in services. The Report looks at the availability of information on NTMs and the latest trends concerning usage. It discusses the impact that NTMs have on trade and examines how regulatory harmonization and/or mutual recognition of standards may help to reduce any trade-hindering effects. Finally, the Report looks at international cooperation on NTMs.

The World Trade Report 2010 focuses on trade in natural resources, such as fuels, forestry, mining and fisheries. The Report examines the characteristics of trade in natural resources, the policy choices available to governments and the role of international cooperation, particularly of the WTO, in the proper management of trade in this sector. A key question is to what extent countries gain from open trade in natural resources. Some of the issues examined in the Report include the role of trade in providing access to natural resources, the effects of international trade on the sustainability of natural resources, the environmental impact of resources trade, the so-called natural resources curse, and resource price volatility. The Report examines a range of key measures employed in natural resource sectors, such as export taxes, tariffs and subsidies, and provides information on their current use. It analyzes in detail the effects of these policy tools on an economy and on its trading partners. Finally, the Report provides an overview of how natural resources fit within the legal framework of the WTO and discusses other international agreements that regulate trade in natural resources. A number of challenges are addressed, including the regulation of export policy, the treatment of subsidies, trade facilitation, and the relationship between WTO rules and other international agreements.

The theme of this year’s Report is “Trade in a Globalizing World”. The Report provides a reminder of what we know about the gains from international trade and highlights the challenges arising from higher levels of integration. It addresses a range of interlinking questions, starting with a consideration of what constitutes globalization, what drives it, what benefits does it bring, what challenges does it pose and what role does trade play in this world of ever-growing inter-dependency. The Report asks why some countries have managed to take advantage of falling trade costs and greater policy-driven trading opportunities while others have remained largely outside international commercial relations. It also considers who the winners and losers are from trade and what complementary action is needed from policy-makers to secure the benefits of trade for society at large. In examining these complex and multi-faceted questions, the Report reviews both the theoretical gains from trade and empirical evidence that can help to answer these questions.

The annual World Trade Report focuses on trade policy issues - the core topic addressed in 2006 is subsidies. The Report also takes a look at recent trade developments and examines a range of trade topics, including trade in textiles and clothing, flows of international receipts and payments of royalties and license fees, trends in the trade of least-developed countries, and the impact of natural disasters and terrorist acts on international trade flows. The World Trade Report is useful for policymakers and for any individuals or groups interested in global trade policy.