The Annual Report 2014 provides an overview of WTO activities in 2013 and early 2014. The report opens with a message from WTO Director-General Roberto Azevêdo and a brief summary of the year, followed by an in-depth review of the WTO's main areas of activity.

A message from WTO Director-General
Roberto Azevêdo

The World Trade Organization is back in business. That’s the message that rang out loud and clear from the Bali Ministerial Conference at the end of last year, when all members of the WTO agreed on a package of measures aimed at streamlining customs practices, tackling important agricultural issues, and boosting opportunities for our poorest members. The “Bali Package” is the first set of agreements struck since the WTO was created in 1995 and represents a positive step towards concluding the Doha Round of trade negotiations, which began in 2001.

Once implemented, the Bali Package will provide a boost to the global economy, delivering growth and jobs. Indeed, it is estimated that the deal could be worth up to US$ 1 trillion per year, generating up to 21 million jobs around the world. Crucially, the majority of these gains would accrue to developing and least-developed countries. Indeed, the negotiating process leading up to Bali created a new dynamic in the WTO as developing and least-developed countries made their voices heard as never before.

The practical benefits of the Bali Package are manifold. Entrepreneurs in developing countries will have new opportunities to participate in global trade while enterprises across the world, particularly small and medium-sized companies, will benefit from a reduction in red tape – and in an unprecedented step developing countries will be given support to build capacity in order to implement the agreement. In addition, trade in agriculture will be more transparent for many products and markets. Governments agreed to reduce export subsidies in agriculture and keep them at low levels, to increase transparency and opportunities with respect to trade in agricultural products, and to facilitate efforts of developing countries in stockpiling for food security purposes.

Bali also brought significant systemic benefits. Once again the WTO is a viable forum for negotiations. By demonstrating we can reach multilaterally agreed outcomes, we have put the spotlight back onto the WTO and raised expectations for what else we might be able to achieve. Over the coming months, it is vital that we build on the momentum that the deal created – and ensure that the WTO can deliver even more in the future.

First and foremost, we have to harvest the benefits of Bali by fully implementing the decisions reached at the Bali Conference – including implementing the Trade Facilitation Agreement and delivering the support promised for developing countries. Secondly, as instructed by ministers at the end of the Conference, we must prepare a clearly defined work programme by December 2014 which sets out a roadmap to conclude the Doha Round. Our goal is nothing less than to complete the Doha Round, and to do it as quickly as possible.

Let’s not forget what is at stake here. Trade is a powerful force for growth and development. It stimulates innovation and competitiveness, supports the creation of high-quality jobs, provides access to new products, lowers prices, cuts the cost of living and brings peoples of different nations closer together. Above all, trade improves the quality of people’s lives.

In the last two years, trade growth has slowed to just over 2 per cent and our forecast for 2014, while higher at 4.7 per cent, is still below the 20-year trend. But members are not powerless in the face of these figures. We can actively support trade growth by avoiding protectionism in times of uncertainty and by reaching new trade agreements.

There has been a lot of focus in recent times on regional and bilateral agreements. These initiatives clearly have a role to play – indeed, I believe they are an important complement to the multilateral system. But it is clear that they are not sufficient on their own. For example, they leave out a large number of countries – not only the most dynamic emerging economies, but also the smallest and most vulnerable. In addition, many of the big issues (and therefore many of the big gains) can only be tackled at the global level. Streamlining customs procedures through the Trade Facilitation Agreement and tackling agricultural subsidies are just two examples of issues which can only be properly tackled multilaterally.

This is not just my view. Since the Bali conference, I have travelled far and wide to consult with leaders on the next steps for the WTO. From every country I have visited and every leader I have spoken to, I have been struck by the positivity towards our work in Geneva. There is strong support for the multilateral trading system and the WTO – and a will to build on the momentum of Bali.

Since my appointment as Director-General in September of last year, I have been struck by the commitment shown by WTO members and the Secretariat to achieve results. Bali was an historic occasion for the WTO. My sincere hope is that it heralded the beginning of a new era. Of course, hope is not enough on its own, but I am confident that with the same dedication and commitment we saw from our members last year, we will continue to make further progress in 2014 and beyond – and therefore help to improve the lives of the people we are here to serve.

Excerpts taken from the WTO Annual Report 2014 - Chapter 1: Introduction.