RESTORING MULTILATERAL TRADE CO–OPERATION

This diagnostic report synthesises findings from five dialogues held in developing countries to explore paths for revitalising multilateral trade negotiations following the stalemate of the Doha Round. It examines the rise of mega-regional trade agreements (MPTAs) and plurilateral approaches as alternatives to the World Trade Organization's (WTO) consensus-based model, while highlighting the specific needs of developing countries and least developed countries (LDCs) in the context of global value chains (GVCs) and agricultural reform.

• The Doha Round is stalled due to a combination of shifting political economy, substantive blockages, and the constraints of the 'single undertaking' mechanism. Developing countries seek a 'rebalancing of WTO obligations' to correct past tilts in favour of developed nations, while developed countries' business communities have shown lukewarm support for the Round, focusing instead on issues like trade in services that were neglected in Doha.
• A new architecture of trade negotiations has emerged, dominated by mega-regional preferential trade agreements (MPTAs) such as the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP). These agreements focus on 'behind the border' issues—including investment security, IPR, and state-owned enterprises—that are largely absent from the Doha Round, potentially creating a system where non-participating countries have no voice in rule-making.
• The proliferation of global value chains (GVCs) has shifted the focus of trade toward 'behind the border' regulatory environments. While some countries like South Korea embrace GVCs as the future of trade governance, others, such as Brazil and South Africa, view the associated liberalisation agenda with suspicion, fearing it infringes on domestic industrial policy space.
• Least developed countries (LDCs) face significant barriers to participating in GVCs, including poor connectivity, cumbersome business processes, and a lack of structural conditions (legal and regulatory) that make MPTA members more attractive for foreign direct investment (FDI).
• The 2013 Bali package provided a limited success through the Trade Facilitation Agreement (TFA), which introduced a new approach to special and differential treatment (S&DT) by linking implementation to a country's self-defined capacity and providing voluntary funding from high-income countries.
• Agricultural negotiations remain a primary point of contention, with the report suggesting a 'critical mass' plurilateral approach as an alternative to the WTO's full consensus requirement. Such an approach would limit negotiations to a smaller group of nations (potentially as few as 38) that represent the bulk of world agricultural trade to prevent individual countries from blocking agreements.
• The Trade in Services Agreement (TISA) represents a plurilateral effort to address the neglect of services in the Doha Round. While it covers approximately 70% of world trade in services, its effectiveness and potential for multilateralisation depend heavily on the participation of China.
• There is a risk of 'balkanisation' of trade, particularly in the Asia-Pacific region, as countries respond to US-led MPTAs with alternative arrangements like the Regional Comprehensive Economic Partnership (RCEP) and China's 'one belt, one road' initiative.

APA

DRAPER, P., DUBE, M., CUNNINGHAM, D., & HOEKMAN, B. (n.d.). RESTORING MULTILATERAL TRADE CO–OPERATION. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2015/12/2015-12-09-Restoring-Multilat-Trade-Cooperation-Diagnostic-report.pdf

Chicago

DRAPER, PETER, MEMORY DUBE, DICK CUNNINGHAM, and BERNARD HOEKMAN. RESTORING MULTILATERAL TRADE CO–OPERATION. South African Institute of International Affairs, n.d. https://saiia.org.za/wp-content/uploads/2015/12/2015-12-09-Restoring-Multilat-Trade-Cooperation-Diagnostic-report.pdf.

Wikipedia

{{cite report |last1=DRAPER |first1=PETER |last2=DUBE |first2=MEMORY |last3=CUNNINGHAM |first3=DICK |last4=HOEKMAN |first4=BERNARD |title=RESTORING MULTILATERAL TRADE CO–OPERATION |publisher=South African Institute of International Affairs |url=https://saiia.org.za/wp-content/uploads/2015/12/2015-12-09-Restoring-Multilat-Trade-Cooperation-Diagnostic-report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{draperndrestoring, author = {DRAPER, PETER and DUBE, MEMORY and CUNNINGHAM, DICK and HOEKMAN, BERNARD}, title = {{RESTORING MULTILATERAL TRADE CO–OPERATION}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2015/12/2015-12-09-Restoring-Multilat-Trade-Cooperation-Diagnostic-report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }