E C O N O M I C R E P O R T O F T H E P R E S I D E N T

and having won 12 in litigation. And the WTO provides new rules for protectingintellectual property rights. For the United States and many othercountries, such rights convey substantial value. In 1998, for example, U.S.exports of royalties and license fees amounted to about $37 billion.By and large, countries participating in the GATT and later the WTOhave adhered to their commitments. The trend toward market liberalizationsince World War II, and the maintenance of commitments not to raise barrierseven in the face of international financial crises, stand in sharp contrastto the trade policy experience of the interwar period. The multilateral tradingsystem has played a critical role in maintaining and expanding economic ties,helping make the last half century one of historically unprecedented economicgrowth for the United States and many of its trading partners.Nevertheless, the rules of the WTO and the ways in which they areadministered can be improved. The dispute settlement process, althoughmuch strengthened, is opaque and sometimes slow. During the Seattle Ministerial,the United States led the call for greater public access and participation.The United States has sought to open the WTO’s dispute settlementprocedures to the public and to allow nongovernmental organizations to fileamicus briefs. The drawn-out pace of settlement proceedings has also causeddissatisfaction. Ordinarily, a case should not take more than a year (15months if it is appealed), but in practice the dispute settlement process cancontinue to drag on even after the WTO has adopted a ruling. For example,in the case involving the EU banana import regime, the WTO found for theUnited States in about 18 months from the point of initial consultation, butby the time the United States was finally authorized to suspend trading concessions,nearly 3 years had passed.Promoting Growth InternationallyThe United States has long advocated the use of the multilateral tradingsystem to promote economic growth internationally, often with considerablesuccess, but not all countries are well positioned to reap the benefits thattrade can afford. Steps can be taken to help ensure that developing countries,including the least developed, obtain the market access and technical assistancethey need to benefit more fully.Developing countries have increasingly come to appreciate the value of themultilateral trading system. The system not only provides them opportunitiesto trade on the basis of their comparative strengths but also reinforcesmarket-oriented development strategies where they have been adopted. Originallydominated by the industrial countries, the system has witnessed growingparticipation as other nations have sought inclusion. Today the WTOcounts 135 members, with over 30 nations, including China, seeking accession(Box 6-2). This allure of the trading system supports the conviction that220 | Economic Report of the President