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Info Service on WTO and Trade Issues (Feb25/10) Geneva, 20 Feb (D. Ravi Kanth) — The United States on 19 February appears to have conveyed to the World Trade Organization’s Director-General not to politicize the accessions of new members to the trade body, as attempts are underway to construct a “development package” for the WTO’s 14th ministerial conference (MC14) in which the issue of WTO accessions is likely to be included, said people familiar with the development. MC14 is scheduled to be held in Yaounde, the capital of Cameroon, in March next year. On the second day of the WTO’s General Council (GC) meeting on 19 February, the US raised several concerns about the manner in which the issue of accessions is being sought to be accelerated without adequate discussions and timely delivery of documents to assess the accessions of Somalia and Ethiopia to the WTO among others, said people familiar with the development. The WTO DG, Ms Ngozi Okonjo-Iweala, highlighted the strong political commitment expressed by Ethiopia’s leadership during her recent meetings in Addis Ababa, emphasising the country’s dedication to its WTO accession process. Regarding accessions, she noted that Somalia’s first Working Party meeting took place on 17 February, while Ethiopia’s Working Party meeting is set to resume on 19 March after a five-year pause. Looking ahead, the DG said she anticipates Working Party meetings for Bosnia and Herzegovina, Equatorial Guinea, Azerbaijan, and others, viewing these as positive milestones that could contribute to potential deliverables for MC14 and beyond, said people familiar with the development. Responding to the statement by the DG on WTO accessions under item 11 of the GC agenda, the US is understood to have acknowledged the DG’s annual report on WTO accessions but noted that it was only released over the weekend and was still under review, said people familiar with the discussions. The US seemingly reiterated its position that substance should determine the timing, stating that they do not share the DG’s optimism. The US appears to have highlighted concerns about one specific WTO accession, pointing out that the requested documents from five years ago were still outstanding. It seemingly maintained that the accession process takes time and “it is not helpful to put a political spin on things”, in response to the DG’s remarks, said people familiar with the discussions. The US also emphasised the need for timely circulation of documents that form the basis of meeting agendas, stressing that late submissions hinder proper preparation and deliberation, said people familiar with the proceedings. The US apparently voiced its disappointment over the limited time allocated to the Somali Working Party meeting, arguing that this constrained substantive discussions with the Somali delegation, said people familiar with the discussions. It appears that the US had voiced its concerns in a “green room” meeting, urging the WTO Secretariat to take them seriously, said a member who asked not to be identified. The US official seems to have reminded the Working Party chairs on WTO accessions that they are appointed by the members to facilitate their work and remain accountable to them, and not the Secretariat, said people familiar with the discussions. “The WTO DG is shaping the contours of a “Development Package” for MC14, with LDC accessions like [that of] Ethiopia taking centre stage,” said a person who asked not to be quoted. But as the US rightly pointed out, this reflects a broader politicisation of WTO accessions – where the “optics” risk outweighing the substance, the person said, interpreting the outcomes under this package as “cosmetic” at best, prioritising quantity over quality. The reality is that most developing and least developed countries remain on the margins of the global economy, and without real structural support, adding more names to the WTO’s membership list won’t change that, said another person. The US statement also serves as a stark reminder about the WTO secretariat, in this instance, the Accessions Division, which has long been accused of exceeding its mandate, the person said. “For years, LDCs and acceding countries have raised concerns about its overreach, and Washington’s remarks only reinforce the need for a more rules-based, transparent approach to WTO accessions – one that genuinely facilitates integration rather than advancing political narratives in time to secure ministerial outcomes,” the person said. China thanked the DG “for the annual report on WTO accessions, as well as the Secretariat for their efforts in accession negotiations and post-accession support.” China said that “accession is important, both to the acceding governments and to the WTO,” insisting that “more economies could join the WTO in the near future, and are committed to working with them to cross the finish- line. In particular, we look forward to the early accession of Bosnia and Herzegovina and Uzbekistan, before or at MC14.” The Chinese trade envoy, Ambassador Li Chenggang, called “on all members to show utmost flexibility to facilitate the LDCs’ accessions.” Seemingly angered by the US statement on WTO accessions, the DG, in her concluding statement on her annual report on WTO accessions, pointedly told the deputy US trade envoy David Bisbee that it was not a “political spin”. She is understood to have said that it is what you can see from the discussion on WTO accessions and members’ responses, said people familiar with the discussions. “WTO AT 30” On another agenda item on “WTO at 30” and the GATT’s 80th year, the DG is understood to have said that all this could culminate with an event of a panel of eminent persons, chaired by a respective political leader and comprising experts on both technical issues and the political economy of trade, said people familiar with the discussions. She suggested that members would have a chance to nominate persons to this group to show balance and ownership, and that the group will operate as an independent panel. She indicated that its secretariat’s functions could be supported by staff seconded by the WTO secretariat, said people familiar with the discussions. The independent panel’s recommendations or interim report can be sent to ministers for deliberation at MC14 or later, depending on how quickly the work can be undertaken, she suggested, according to people familiar with the discussions. The DG informed members that the idea is not for a long drawn-out exercise, but an efficient one given the panel’s independence, suggesting that the exercise is not new and that a couple of her predecessors such as the late Peter Sutherland, Dr Supachai Panitchpakdi, and even Arthur Dunkel have undertaken similar work but at a technical level. The DG reminded members that at their recent “development” retreat, it was also suggested that such a review exercise would be useful, said people familiar with the discussions. This reflection will not disrupt the ongoing negotiations and other initiatives, she maintained, according to people familiar with the discussions. The US deputy trade envoy said that Washington will be giving further consideration to this issue, while expressing some initial reactions, said people familiar with the discussions. The US said that it has concerns about holding additional events, adding that there are already quite a bit of secretariat-led events going on and a very crowded agenda that members are trying to set for themselves, said people familiar with the discussions. The US complained that the proposed event in April sounds like we are recreating the Public Forum in April, and the one question is, why not hold the event in the Public Forum itself (which is usually held during September- October), said people familiar with the discussions. The US said it wants to express serious concerns over the idea of convening an external panel of experts that would evaluate the WTO and suggest reforms, emphasizing that it is the responsibility of the members themselves, said people familiar with the discussions. Furthermore, the US said that it doesn’t agree with outsourcing the task to external individuals and a lot more information is needed about what is being envisioned here, adding that the US has conveyed its concerns to the WTO’s deputy director-generals. More disturbingly, this approach again would put members in a passive and reactive posture while inviting others to set the agenda, the US appears to have said at the GC meeting. The US apparently said that it has considerable questions about the budgetary allocations and the staff time needed to support something that members didn’t really ask for, said people familiar with the discussions. India also reminded the DG that there are submissions already on the table, such as the “30 For 30” proposal. It urged further clarity from the DG, especially on the contours of the reforms being proposed because it may involve sensitivities for members, said people familiar with the discussions. India is understood to have said that there have been persistent challenges for decades which have worsened, like food insecurity. The Indian trade envoy said that developing countries are also facing an undue burden in trade – for most of them, their share in global trade has not grown. It added that we are also off-track from achieving the SDGs, said people familiar with the discussions. India requested for the DG’s statement to be circulated, so that it can voice its view, adding that in its view, review and examination should primarily be member-driven, said people familiar with the discussions. China, however, praised the DG for her “excellent leadership and tireless efforts in guiding the WTO.” The Chinese trade envoy said that China supports holding events such as stocktaking retreats, and the DG’s suggestion on the expert review. China said that “it is important to elevate the discussion on WTO reform to political levels – what is equally important, is we members in Geneva to prepare the basis for such political engagement.” Responding to the repeated mention of a member-driven basis for the discussions, China asked, “how should we as members more effectively drive this organization? What direction should we drive?” “DEVELOPMENT PACKAGE” Privately, some members said on a background basis that the DG is shaping the contours of a “Development Package” for MC14, with LDC accessions like that of Ethiopia taking centre stage. These members were of the view that as the US rightly pointed out, this reflects a broader politicisation of WTO accessions – where “the optics risk outweighing substance.” For instance, these members said that the WTO’s involvement in integrating the fragile and conflict-affected states into the multilateral trading system further raises critical questions about its mandate and priorities. Initiatives like the “Trade for Peace” programme of the G7-plus underscore the potential of trade to foster stability, said members, who asked not to be identified. They also highlighted the WTO’s apparently increasing entanglement in complex political landscapes, asking whether it is the WTO’s role to circumnavigate peacebuilding efforts, or does this risk diluting or expanding its core trade-focused mission. NOTE: In issue #10166 dated 20 February 2025, the SUNS inadvertently mentioned that Namibia spoke against the Investment Facilitation for Development Agreement (IFDA). However, Namibia did not speak on this issue. +
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