Membership in the World Trade Organisation – Institutional ImlicationsAnd Impact on Domestic Trade Policies
Authors: Safarli Kanan 
Published: September 2024

The paper concerns implications of the WTO rules on domestic regulations and trade policy measures and analises trade policy options available for a WTO member-state under the WTO rules that may maintain benefiting from the WTO membership. It describes effects of the WTO disciplines on institutional structure of the member-states and analyses issues relating to the formulation of the WTO compatible trade policy measures and mechanisms of their application, examines possibilities for the utilisation of contingency protection measures available under the WTO law. Issues of institution building, trade regime formation and creation of an adequate normative basis of the trade policy formulation is also touched upon based on such analysis, given that the mentioned aspects of the WTO membership is a necessary condition for a successful WTO compliant trade policy. At the same time, it also becomes important to ensure achievment of the development and welfare interests and avoid of subjecting foreign trade measures to private interests by way of establishment of the appropriate procedures and legal environment. Therefore, shaping trade regime and legal procedures in a way enabling formulation and implementation of measures serving the community interests and excluding or minimising utilisation therof in the interests of the private interest groups aquire utmost importance. Based on this, the paper analyses interactions between the rules, practices and institutions comprising the WTO law and the trade regimes of the member­states and explores possibilities of establishing, conducting and adaptation of the WTO complaint trade policies capable of ensuring acievement of social and econimic development goals. Therefore, the paper explores the trade policy regulation mechanisms of the states within the normative and institutional framework established by the WTO law, as well as the possibilities of introducing economic and social development-oriented trade policies by the member-states and candidates for membership in accordance with the WTO law. For these purpose, the legal and institutional aspects of the WTO affecting formation of trade policies and the application of trade measures by the member states and consequencies of mutual institutional influences between the WTO law and the trade policies of the member states are highlighted, principal legal and institutional effects arising from the WTO agreements have been analysed, experience of the WTO members in trade policy formulation and implementation have been summarized, deficiencies and shortfalls in the internal legal systems and institutional structures that may arise in connection with the membership in the WTO identified based on analysis of the experience of the WTO members, recommendations and proposals regarding legal adaptation and institutional changes that may be considered necessary or appropriate in connection with WTO membership have been formulated. It is shown that membership in the WTO results in long-term effects on the country’s economy, and these effects concern primarily the legal regulation of trade relations. WTO membership, creates the need to constantly adapt the application of trade policy measures to the WTO requirements. The paper asserts that specific times, durations and purposes of trade measures applicable in accordance with the WTO law depend on the specifics of the objectives and the issues to be resolved in a specific political and economic conditions and, therefore, must be determined individually in each case. The trade policy in such case needs to be purposefully and organically reconciled with general macroeconomic measures such as tax policy, labor market regulations, investment environment, currency policy, etc., in order to be able to maintain economic efficience and social welfare under the WTO rules, otherwise it is possible that membership in the WTO can become a source of economic and social tensions. WTO membership may vreate serious economic and social risks. Mitigation of such risks requires adaptation of the legal regulation, as well as institutional and power structures. Solutions should accomodate specific political, economic and social situations, institutional structure and would require involvement of adequate fianacial and intellectual resources. The paper also toches upon the issues of transparency, market competition, good governance methods, market inadequacy and market protection possibilities. As an overall conclusion, it is asserted that adherence to the WTO rules does not ensure the increase in the level of well-being, economic and social development, but only creates the basis for it. Achieving these goals may not be possible through membership in the WTO, but through appropriate organizational structure taking into account the membership requirements, as well as thoughtful decisions on the use of opportunities provided by the WTO. Although the requirements are numerous, the freedom to decide about these requirements is not small. This last aspect is a key issue to consider in terms of the impact of the WTO on trade policy and market access conditions.