	Overview

We believe that the United States generally achieved its negotiating objectives in the Uruguay Round, and most studies we reviewed projected net economic gains to the United States and the world economy. The General Agreement on Tariffs and Trade (GATT) Uruguay Round agreements are the most comprehensive multilateral trade agreements in history. Despite expectations for overall economic gains, we noted in recent reports that specific industry organizations and domestic interest groups had concerns that the agreement would adversely affect some U.S. interests. Nevertheless, our work highlights the following issues: (1) the WTO’s organizational structure and the secretariat’s budget have grown from 1994 to 1996 to coincid with new duties and responsibilities approved by the member countries; (2) faced with over 200 requirements, many member nations have not yet provided some of the notifications of laws or other information as called for in the agreements; (3) this year provides the first opportunity to review whether anticipated U.S. gains in agriculture will materialize, as countries begin to report on meeting their initial commitments; (4) the new agreements require that food safety measures be based on sound science, but U.S. agricultural exporters seem to be encountering more problems with other countries’ measures and a number of formal disputes have already been filed with WTO; (5) while efforts are underway to improve transparency provisions regarding state trading, these provisions alone may not be effective when applied to state-dominated economies, like China and Russia, seeking to join WTO; (6) while textile and apparel quotas will be phased out over 10 years, the United States has continued to use its authority to impose quotas during the phase-out period and will not lift most apparel quotas until 2005; (7) despite the end of the Uruguay Round, some areas, like services, are still subject to ongoing negotiations; (8) there were 25 disputes brought before WTO in 1995 by various countries, including some involving the United States. The information provided allows members to monitor each others’ activities and, therefore, to enforce the terms of the agreements. Monitoring foreign government implementation of commitments is important to ensure that the United States will receive the expected benefits. Members are debating whether to (1) push further liberalization in areas already agreed to, but not yet fully implemented; and/or (2) negotiate new issues related to international trade.
Why GAO Did This Study

GAO discussed the implementation of the General Agreement on Tariffs and Trade's Uruguay Round agreements and the operation of the World Trade Organization (WTO).

What GAO Found

GAO noted that: (1) the U.S. has generally achieved its negotiating objectives in the Uruguay Round; (2) the agreements are expected to open markets by reducing trade barriers and unfair trade practices; (3) some U.S. industries and domestic interests are concerned that the agreements will have adverse effects; (4) implementation of the agreements is complex and its effects will not be known for many years; (5) the United States needs to monitor the agreements' implementation to ensure that member countries honor their commitments and the expected benefits are realized; (6) the WTO organizational structure and the secretariat's budget have grown in relation to its expanded responsibilities; (7) several import and export issues involving the service, textile, and agriculture industries continue to be disputed and are awaiting settlement; (8) many member countries have not met their notification requirements so that other member countries can monitor and enforce agreement terms; and (9) WTO members need to address how to allocate its resources, how to assimilate new countries into WTO, and whether to pursue liberalization in areas already agreed upon or initiate negotiations on new topics.