Global Agenda

The report argues that the WTO's centrality has been eroded because its rules, last updated in 1994, fail to address 21st-century realities like global value chains (GVCs) and cybersecurity. This has led to a 'three-pillar' system consisting of WTO rules, deep regional trade agreements (RTAs), and unilateral reforms. The authors warn that without updating the WTO's legislative framework, the Dispute Settlement Mechanism (DSM) may lose legitimacy, potentially leading to a 'spaghetti bowl' of fragmented rules and raw power politics. The document specifically analyzes China's shift toward becoming a 'rules maker' through initiatives like the New Silk Road and the Asian Infrastructure Investment Bank (AIIB), and examines how 'high politics' (national security) and 'low politics' (industrial policy) now intersect in trade, particularly regarding cybersecurity and data localization.

• The WTO's centrality has been eroded by a 'three-pillar' global trade governance system: WTO rules for traditional goods, deep regional trade agreements (RTAs) and bilateral investment treaties (BITs) for global value chains, and unilateral reforms by developing nations.
• The WTO's rule-writing function has been frozen since 1994, leaving it unable to address modern issues such as state-owned enterprises, currency manipulation, and the complexities of global value chains (GVCs).
• There is a dangerous imbalance between legislation and litigation in the WTO; judges are currently using 'evolutionary interpretation' to apply outdated rules to modern disputes, which threatens the long-term legitimacy of the Dispute Settlement Mechanism (DSM).
• Global trade is experiencing an 'interregnum' where leadership is shifting from a US-centric Western regime to a broader base including China, India, and Brazil, leading to a divergence of interests and difficulty in reaching multilateral consensus.
• A 'new industrial policy' has emerged in developing and middle-income countries, focusing on market-supporting measures and public-private partnerships to integrate into global value chains rather than old-style import-substitution and border protection.
• Cybersecurity has become a primary intersection of 'high politics' (national security) and 'low politics' (trade), with countries like the US and China using national security exceptions to justify trade restrictions and data localization requirements.
• China is transitioning from being a 'rules taker' to a 'rules maker,' proactively pursuing higher-standard FTAs and establishing its own institutions, such as the Asian Infrastructure Investment Bank (AIIB) and the 'One Belt and One Road' initiative.
• The future of an inclusive trading system depends on whether US-sponsored mega-regionals like the TPP and TTIP act as 'building blocks' for competitive liberalization or 'stumbling blocks' that marginalize excluded developing nations.

APA

World Economic Forum (2015). Global Agenda. http://www3.weforum.org/docs/WEF_GAC15_The_High_Low_Politics_Trade_WTO_Centrality_report_2015.pdf

Chicago

World Economic Forum. Global Agenda. 2015. http://www3.weforum.org/docs/WEF_GAC15_The_High_Low_Politics_Trade_WTO_Centrality_report_2015.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Global Agenda |date=August 2015 |url=http://www3.weforum.org/docs/WEF_GAC15_The_High_Low_Politics_Trade_WTO_Centrality_report_2015.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2015global, author = {{World Economic Forum}}, title = {{Global Agenda}}, institution = {World Economic Forum}, year = {2015}, month = aug, url = {http://www3.weforum.org/docs/WEF_GAC15_The_High_Low_Politics_Trade_WTO_Centrality_report_2015.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }