WTO Trade Policy Reviews

The objective of the Trade Policy Review Mechanism (TPRM) first established at the Mid-Term Review of the Uruguay Round, is to contribute to improved adherence by all Members to rules, disciplines and commitments made under the Multilateral Trade Agreements and, where applicable, the Plurilateral Trade Agreements.

The TPRM can contribute to the smoother functioning of the multilateral trading system, by achieving greater transparency in, and understanding of, the trade policies and practices of Members.

The mechanism enables the regular collective appreciation and evaluation of the full range of individual Members' trade policies and practices and their impact on the functioning of the multilateral trading system.

It is not, however, intended to serve as a basis for the enforcement of specific obligations under the Agreements or for dispute settlement procedures, or to impose new policy commitments on Members. Reviews take place against the background of wider economic and developmental needs, policies and objectives of individual Members, as well as the external trading environment.

Review intervals

The TPRM provides for a Trade Policy Review Body (TPRB) to examine regularly the trade policies and practices of WTO Members,

• every two years for the four major traders - the European Union, the United States, Japan and Canada
• every four years for the next 16 leading traders - a group which currently includes nine developing countries
• every six years for the remaining traders, although longer intervals may be prescribed for least-developed countries.

The basis for examination is a report prepared by the Secretariat and a policy statement by the country under review. The TPRB also carries out an annual overview of developments in the international trading environment which are having an impact on the multilateral trading system, assisted by an annual report by the Director-General setting out major activities of the WTO and highlighting significant policy issues affecting the trading system.

Benefits

The Trade Policy Review process is a valuable stimulus to the internal discussion of trade policies in countries under review. Conducting a review, compiling a government report and responding to questions raised by the Secretariat in the preparation of its report, means that the national administration has to carefully examine the overall structure and impact of its own trade policies, often for the first time.
• For developing countries, this experience has been particularly valuable in assessing - and possibly fine-tuning or providing additional motivation for - domestic reform programs, and enhancing the inter-agency cooperation on the broader range of issues covered by the Uruguay Round (agriculture, services, intellectual property protection. etc.). The increased domestic transparency has proven to be very valuable.
• For trading partners, the TPR process provides an opportunity to examine trade policies and practices in detail, with a view to communicating major areas of concern, and assessing, over time, whether these concerns are being satisfactorily resolved.

Together, these elements of the TPRM process have helped countries assess their trade and economic reforms, and may have contributed to some portion of the liberalization that has taken place under the Uruguay Round.

In the future, the TPR process will help WTO Members evaluate their implementation of the Agreements, as well as provide an early warning of trends of potential concern to all participants in the trading system.