The World Trade Organization – Sustainable Development Goals 

 

The World Trade Organization – Sustainable Development Goals 

By Vedika Vasandani 

Introduction to World Trade Organization (WTO) 

World Trade Organization is an intergovernmental organization established for promoting  international trade between various member countries. Its main aim is to establish, revise and  enforce the rules that govern international trade. Moreover elimination of the trade barriers such  as tariffs, quotas and other restrictions is its priority. It also solves the disputes that take place  between member countries in order to initiate smooth functioning of international trade.  Initially we had seen the establishment of GATT ie General Agreement on Tariffs and Trade in  1948 which was later replaced by World Trade Organization on 1^st of January 1995. Its  headquarters are in Geneva, Switzerland. It’s the world's largest economic organisation, with  164 member states representing over 98% of global trade and global GDP. The organisational  structure of WTO consists of Ministerial Conference, The General Council, The Dispute  Settlement Body and The Trade Policy Review Body. 

What are Sustainable Development Goals? 

The sustainable development goals emphasize the interconnected environmental, social and  economic aspects of sustainable development by putting sustainability at its center. So basically  it is a non-profit and a global mission which was established by United Nations in 2015. These  goals replaced the Millennium Development Goals which were completed in the same year.  The mission statement of the sustainable development goals is as follows – “ A shared blueprint  for peace and prosperity for people and the planet, now and into the future” Most of these  goals and targets are to be achieved by 2030, although some have no end date.  

The WTO and the Sustainable Development Goals 

The WTO is central to achieving the 2030 Agenda for Sustainable Development and its  Sustainable Development Goals which sets targets to be achieved by 2030 in areas such as  poverty reduction, health, education and the environment etc. These goals recognize the  significant contribution of trade in the sustainable development and also determines the role of 

WTO in achieving the sustainable development goals by 2030 Agenda. Trade helps in reducing  economic inequality, eradicating poverty, promoting prosperity, helps to boost the development  process etc. Hence the role of WTO in achieving Sustainable Development Goals is of much  importance. In total there are 17 Sustainable Development Goals, out of which some of them  directly related to the trade have been mentioned here. 

Sustainable Development Goals (SDG's) 

SDG 1. No Poverty 

Trade helps in increasing the standard of living of people. Effective trade policies, increased  production and competition, better choices and market prices etc sets a positive impact on the  sustainable reduction of poverty. Trade promotes economic equality which in turn helps  reducing the rate of poverty in developing countries. 

SDG 2. Zero Hunger 

Trade related to various food and agriculture products and services, ensuring food security,  eliminating subsidies that cause distortions in agriculture market and providing for fairer and  more competitive markets that would help both the farmers and consumers etc are some of the  aims of WTO in achieving the 2^nd Goal of Zero Hunger. 

SDG 3. Good Health and Well Being  

One of the main aims of WTO is to provide affordable medicine across various member  nations. Trade contributes significantly to technological advancement which in turn influences  public health through pharmaceutical R&D. With more technological innovation in medical  treatment and pharmaceuticals, it becomes easy to promote public health. 

SDG 4. Gender Equality  

Trade creates equal opportunities for both men and women in the job space. It helps in  increasing the employment rate of many countries. Because of development in trade, many jobs  have better pay and suitable conditions for women to work in the economic sector. It works for  both, the equal employment opportunities as well as all round economic development. 

SDG 5. Industry, Innovation and Infrastructure  

Trade promotes dynamic structure of the economy by increasing competition and the transfer of  technology, knowledge and innovation. Open markets play a significant role for the trade and  investment between developing and developed countries which promotes industrialization and  technological development in the underdeveloped and developing countries. 

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SDG 6. Reduced Inequalities  

Trade not only reduces gender inequalities but also helps in eradicating economic poverty. It is  not limited to individuals but the entire nation as a whole. WTO rules try to reduce the impact  of existing inequalities through the principle of Special and Differential Treatment for  developing countries. This allows the use of flexibilities by developing and least developed  countries to take into account their capacity constraints.  

SDG 7. Decent Work and Economic Growth  

Along with the economic development, trade also helps to initiate the overall economic growth  of a country. It enhances the income- generating capacity of a country which is one of the  prerequisites for achieving sustainable development. It promotes work at a domestic level  which helps a country to increase its exports and attain economic stability.  

SDG 8. Life Below Water  

WTO members have been negotiating global rules to curb harmful fisheries subsidies since  2001. The adoption by World Leaders in September 2015 of the UN SDG's and the negotiating  mandate agreed at the WTO Ministerial Conference in 2017gave a renewed sense of urgency to  the talks.  

SDG 9. Partnerships for the Goals  

The targets under this goal call for : countries to promote a universal, rules based, open, non discriminatory and equitable multilateral trading system; the increase of developing countries  exports and doubling the share of exports of least developed countries(LDCs); and the  implementation of duty-free and quota-free market access for LDCs with transparent and  simple rules of origin for exported goods.  

Some other Sustainable Development Goals are as follows- 

• Clean Water and Sanitation 

• Affordable and Clean Energy  

• Sustainable Cities and Communities  

• Responsible Consumption and Production  

• Climate Action  

• Life on Land 

• Peace, Justice and Strong Institutions  

• Quality Education 

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Conclusion  

The overall objective of WTO is to help its members use trade as a means to raise living  standards, create job opportunities, increase productivity, high employment rate, increasing  economic growth and development, efficiency in trade imports and exports etc. The role of  WTO in achieving the Sustainable Development Goals and work towards the betterment of the  World is immense. 

References – 

1. https://www.wto.org 

2. https://sgs.un.org 

3. https://unctad.org 

4. https://www.wto-ilibrary.org 

5. https://sustainabledevelopment.un.org