Boao Forum 2019: How should WTO reforms move forward?

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03:07

With the advent of a new global economy, some say the biggest challenges will come from WITHIN one of the world's biggest financial powers. Many experts say the World Trade Organization is in need of major reforms. Trade and investment rules, support for global economies and developing nations, all were discussed by panelists at the ongoing Boao forum. Here's CGTN's Yang Chengxi.

As the first quarter of 2019 winds down, the world faces a daunting challenge, especially in terms of globalization. That was the message from a panel of current and former government officials and institution heads.

The US has accused the WTO of failing to address the issue of industrial subsidies, an argument many believe is directed at China. Former Chinese Central Bank Governor Zhou Xiaochuan responded.

ZHOU XIAOCHUAN, FORMER GOVERNOR PEOPLE'S BANK OF CHINA "The price system in the past had a lot of distortion, the government had to subsidize, and in the reform process those subsidies were eliminated."

Nevertheless, the US bypassed the WTO to wage a trade war with China, prompting many to question whether the international institution can still act as a trade mediator.

JAMES BACCHUS, FOUNDING JUDGE&CHAIRMAN THE APPELLATE BODY OF WTO "The current president is trying to undermine the rule of law in world trade. He is focused because it has refused to do the bidding of the US."

YANG CHENGXI BOAO HAINAN "Experts say the need to fix the WTO is much more urgent than many think. Its appellate body, which is responsible for dispute settlements, could fail, with three of its judges set to retire this year. And Washington has blocked all new appointments to this appeals chamber."

Bacchus suggested improving the appellate body by increasing the number of judges, making it a full-time post and cancelling the reappointment of judges. This is an issue that has to be worked out this year to avoid an existential crisis for the WTO.

CARLOS GUTIERREZ, CHAIRMAN ALBRIGHT STONEBRIDGE GROUP "What if a big country like America doesn't believe the WTO and wants to quit?"

Panelists raised other issues as well. Former Filipino president Gloria Arroyo says developing economies are under-protected as trade creates development imbalances among countries. But nevertheless, they all agree that such differences should be addressed within the WTO framework. YCX, CGTN, BOAO HAINAN PROVINCE.