Reshaping the Multilateral Trade Policy for Korea

This brief discusses the implications of the recent WTO reform efforts led by leading economies and provides a guideline for Koreas multilateral trade policy under fast-changing global economic environment. In particular, the following three areas are of interest in this brief. First, the achievements and limitations of the current multilateral trading system, represented by the WTO are reviewed. Even though the WTO, the legitimate heir and successor of the GATT regime, began with great ambition for greater trade liberalization, its first negotiation round, the Doha Development Agenda (DDA), has failed to deliver as many outcomes as it was expected to. Reasons for such hardship and challenges the WTO faces are examined. Second, this brief asks the implications of the recent WTO reform efforts led by advanced economies such as the U.S, EU, Canada, and Japan. The current WTO reform efforts are different from previous reform discussions in that they are based on more specific demands and requests. Facing such difference in reform efforts, the strategies and policy options of Korean government to respond to such movement are mulled over. Third, an extensive guideline for Koreas multilateral trade policy are suggested. In addition to the aforementioned WTO reform discussion, economies around the world including Korea face fast-evolving global trading environment since the range of trade issues are greatly extending to digital economy, inclusive trade and furthermore. Such trends of global trading environment are identified and summarized, and possible policy suggestions surmounting challenges from those new economic changes are provided.