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Info Service on WTO and Trade Issues (Jun25/08) Geneva, 9 Jun (D. Ravi Kanth) — The chair of the World Trade Organization’s General Council (GC), Ambassador Saqer Abdullah Almoqbel of Saudi Arabia, on 6 June appointed his predecessor, Ambassador Petter Olberg of Norway, as “facilitator for WTO reform”, a development that some trade envoys described as “unhelpful” to the discussions given the controversial track record of the former GC chair during the WTO Director-General’s re-appointment process, said people familiar with the development. In an email sent to members on 6 June, seen by the SUNS, the current GC chair Ambassador Almoqbel wrote that he held consultations with “interested delegations” in the last week of May on “three key areas.” These areas include: WTO reform, dispute settlement reform (DS reform), and the process towards preparing a possible MC14 (WTO’s 14th ministerial conference to be held in Yaounde, Cameroon, in the last week of March next year) outcome document. He acknowledged that “although WTO reform and DS [dispute settlement] reform are interlinked as part of the WTO core functions, based on all your inputs, it has become apparent that these three key areas should each follow its own dedicated track and timing.” Ambassador Almoqbel stressed that “WTO Reform is fundamental to the future of our organization.” “Success in WTO reform will demonstrate the faith in the future of the Multilateral Trading System, and will help build trust among us,” he argued. “With the 14th Ministerial Conference less than a year away, time is of the essence,” the GC chair informed members, urging them to make “a steady effort, and demonstrate collective responsibility for the continued relevance of the WTO.” He said it is important that “to succeed, the process on WTO Reform must be Member-driven and respond to the concerns of all Members.” Ambassador Almoqbel assured members that he “will maintain overall guidance on this process, ensuring that work progresses in an open, transparent and inclusive manner.” He justified the appointment of his predecessor to facilitate the discussions on WTO reform and “the importance of dedicating enough time to this critical process,” suggesting that Ambassador Olberg “is widely known and well respected.” According to the GC chair’s email, the facilitator “will seek Members’ views so as to assist the General Council chairperson in identifying the key elements of a comprehensive WTO reform process.” The facilitator “will regularly report to the membership”, he said, adding that he will “co-ordinate with him frequently.” Ambassador Almoqbel urged members “to participate actively and constructively in the process facilitated by Ambassador Olberg, and engage with an open mind, ready to explore new areas.” PARIS SETBACK Despite the huge setback suffered in advancing the discussions on WTO reform at an informal trade ministerial meeting in Paris on 3 June, the GC chair’s move to appoint Ambassador Olberg as “facilitator for WTO reform” seems to have been contrived by the DG, Ms Ngozi Okonjo-Iweala, who did not get any support on the issue when members showed no willingness to make any fresh contributions, said a former trade envoy, who took part in the Paris meeting. As reported in the SUNS, during the second session of the Paris meeting, there were no takers to the DG’s poser to members on their respective contributions, the envoy suggested. The appointment of Ambassador Olberg, the former GC chair, as facilitator, may not augur well for the process, as he had allegedly flouted the rules during the DG’s re-appointment process in granting a second term to Ms Okonjo-Iweala, which begins from 1 September 2025, a move that was interpreted to avoid any censure by the incoming Trump administration, said a trade envoy, who asked not to be quoted. Further, the former GC chair held a “retreat” on “development” earlier this year on 16 January, allegedly floating controversial ideas on “differentiation” among developing countries for availing of special and differential treatment (S&DT), in an apparent attempt to please the Trump administration, said a trade envoy, who asked not to be quoted. More importantly, the US Trade Representative (USTR), Ambassador Jamieson Greer, has already made it known that Washington is happy to proceed with its “unilateral” approach on grounds that the WTO has failed to address its core concerns, the envoy said. Furthermore, the Indian trade minister also severely criticized the WTO for failing to address India’s core concerns over non-tariff barriers as well as the alleged threat posed by non-market economies, the envoy said. “Against this backdrop, the process for discussing WTO reform needed a credible, impartial, and non-partisan facilitator,” said another person, who asked not to be quoted. Also, giving priority to “WTO reform” without resolving the past mandated issues as well as the restoration of the binding two-tier dispute settlement system, is “unhelpful”, the envoy said. DS REFORM On “DS reform”, the GC chair wrote in his email that “my consultations have confirmed readiness to preserve and build on the progress already made, and to advance only when the time is ripe to make meaningful progress on key unresolved issues with the engagement of all delegations.” The GC chair said that “the DSB Chairperson and I will be closely monitoring the situation, and will revert to Members at an appropriate time.” Effectively, the GC chair’s email suggests a pause on the issue of DS reform, said a trade envoy, adding that how can members contribute to the WTO reform discussions without knowing what they are going to get on the most important DS reform that would provide “guardrails” for the WTO’s “enforcement” function, which is one of the three key pillars of the WTO – the other two being the negotiating function, and the implementation function. It is commonplace knowledge that the WTO’s Appellate Body has remained dysfunctional since December 2019 due to the US decision to repeatedly block the filling of all seven vacancies on the Appellate Body despite a joint request from 130 countries, said a trade envoy, who asked not to be quoted. The GC chair’s email provides an inkling that to make the discussions on WTO reform “palatable” to the US, the discussions on DS reform are being pushed “to the backburner”, the envoy said. MC14 OUTCOME DOCUMENT In his email to members, the GC chair also said that he has “perceived readiness to engage in the process towards preparing a possible MC14 outcome document – provided that it is conducted effectively and efficiently, and taking into account progress over the coming period.” “I am conscious that this file is critical as we prepare for MC14,” he wrote, informing that he “will be observing the situation closely, and in light of developments and possible further contacts with delegations, I will come back with additional details in due course.” In short, the GC chair’s remarks concerning the MC14 outcome document have also raised doubts whether there will be such a document for MC14 given the US embrace of “unilateralism” as the route for securing its goals while bypassing the multilateral route undergirding the WTO, said several trade envoys, who asked not to be quoted. Furthermore, it remains to be seen whether the US will pay its arrears to the WTO before 1 September and whether it will also attach conditions such as on the DG’s second term commencing also from 1 September on grounds of alleged DG re-appointment “irregularities”, said people familiar with the development. +
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