Transparency and accountability in WTO decision-making procedures: a developing country perspective

English:From the time of its inception after the Bretton Woods conference in 1944, the multilateral trading system now administered by the WTO has been the subject of much controversy and uncertainty, and this has included the way in which participants take decisions. This thesis notes that the problem started with how the WTO's predecessor, the GATT, assumed the role of being the primary global trade regulating body, which was essentially accidental. The GATT was abruptly made to take over the responsibilities initially intended for another institution, the ITO, after the latter failed to come into being as planned. The impromptu manner in which the GATT was thrust into a role it was not designed for inevitably resulted in deficiencies in its ability to carry out its functions. These deficiencies included those found in the GATT decision-making process. This thesis observes that the GATT decision-making process evolved during a period when participants in the multilateral trading system were almost entirely developed countries from the West, and when most developing countries were still under colonial rule. This resulted in the process paying hardly any attention to the concerns and interests of developing countries. At the same time, the process was lacking in both transparency and accountability, thus making the situation even more difficult for developing countries. The thesis argues that although one of the main reasons cited for the creation of the WTO in 1994 was to correct the deficiencies found in the GATT, in reality the WTO inherited many of these deficiencies. Among these are aspects of the GATT decisionmaking process that many developing countries deemed to be prejudicial to their interests. Examples include the continued use of the "green room" meetings in which the majority of important decisions are taken in the absence of most developing countries, as well as the superficial responses to calls to deal with obstacles to effective participation of developing countries in the dispute settlement mechanism. Against this background of an institution that inherited the flaws of the GATT, an analysis of the WTO and the circumstances in which it finds itself today is made. Particular attention is given to the procedures for decision-making during the day-today operations of the WTO and in the dispute resolution mechanism. The thesis argues that the WTO's failure to deal decisively and effectively with the concerns of the majority of its members in the years that it has been in existence has served to further fuel their frustrations. This failure also risks the organisation becoming redundant due to members leaving it en masse as they become disillusioned about its ability to serve their interests. The thesis notes that already, the WTO is facing a serious threat to its survival, as demonstrated by the recent spate of disruptions during its meetings. At the same time, attention is drawn to the failures of developing countries and what they need to do to improve their situation in the WTO. Furthermore, throughout the thesis special attention is given to how the problems of developing countries highlighted above have impacted on South Africa, and its responses to them. A comparison is also drawn between the decision-making process of the WTO and those of other international organisations, in order to determine what lessons the latter can learn from these other institutions. The emphasis is not only placed on the specific methods of decision-making adopted by the various institutions, but also on the flexible manner in which some of the institutions implement the various methods, in order to ensure that ultimately, all their members have a say and are fairly represented in decision-making. Lastly, some recommendations for the way forward are made.