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TWN
Info Service on WTO and Trade Issues (Jul25/20) Geneva, 16 Jul (D. Ravi Kanth) — Several countries seemingly raised serious reservations at the World Trade Organization over the ideas floated by the facilitator overseeing the discussions on “WTO reform” on grounds that they are systemically inconsistent with the Marrakesh Agreement that established the WTO in 1995, while other countries in the “Friends of the System” group supported reform to strengthen the global trade body, said people familiar with the development. This came at a meeting of the Doha Trade Negotiations Committee (TNC) on 15 July, where the United States, in a brief statement, seemingly did not make any comment on the issue of WTO reform, though it praised the ongoing ratification process for bringing the “first wave” of the Agreement on Fisheries Subsidies into force, said people who took part in the meeting. The US appears to have said that it will make a detailed statement at the upcoming General Council meeting on 22-23 July. Earlier, during a closed-door “green room” meeting on 11 July, the US and WTO Director-General Ms Ngozi Okonjo-Iweala, apparently clashed on several issues, including on WTO reform, said people familiar with that meeting. However, when asked, the WTO spokesperson told the SUNS that “we do not provide readouts or comments on the content of closed-door meetings.” At the TNC meeting on 15 July, differences over WTO reform and several other issues came into the open, particularly over the unresolved mandated issues, a concern reiterated by India, said people familiar with the development. DG’S REMARKS In her introductory statement at the TNC meeting, the DG recounted her interactions with various “leaders” at recent gatherings. She noted that despite rising trade measures, 74% of global goods trade still flows under most-favoured-nation (MFN) tariff terms. Without mentioning the “reciprocal” tariffs announced by US President Donald Trump on 2 April or the tariff letters that he recently sent to over 20 countries, the DG said that “in today’s climate of record trade policy uncertainty, safeguarding the stability and predictability the WTO provides has never been more urgent.” “It’s precisely because of today’s challenges that calls for reform, deep reform, repositioning, and real delivery are growing louder,” she said. From her recent positive interactions with “leaders” in various fora, Ms Okonjo-Iweala said: “One message is clear – they understand the stakes, they understand the urgency, and they want results.” “Clearly, we are far from where leaders and stakeholders expect us to be,” the DG said, adding that, “We are not yet adhering to the call for results”. However, the DG seemingly failed to suggest how “reform” will reverse the grim situation of the US unilateral tariffs that allegedly violate the WTO’s core provisions, particularly on MFN and non-discrimination, said trade envoys, who asked not to be quoted. More importantly, “reforms cannot be carried out to merely appease the US and its Congressional Delegation visiting Geneva on 6 August,” said one trade envoy, who asked not to be quoted. CHAIRS’ REPORTS According to a readout of the TNC meeting posted on the WTO’s website, the chairs of the various WTO negotiating bodies provided reports and updates on the work that is currently being carried out in their respective bodies. The outgoing chair of the Doha fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, who had already presented his grim assessment at the Rules negotiating group on 14 July, said that he “unfortunately did not see any indication, nor pick up any signals, of a possible pathway” that could lead to successful conclusion of negotiations on additional provisions to discipline subsidies contributing to overcapacity and overfishing at the upcoming WTO’s 14th ministerial conference (MC14), to be held in Yaounde, Cameroon, on 26-29 March 2026. The chair said that while the draft text (TN/RL/W/285) gained support from most members, it is his assessment that the “gaps that had prevented members from concluding in 2024 remain and, in some aspects, have possibly widened.” “My honest assessment, therefore, remains that the (negotiating group) is not ready to reach consensus now, nor in the coming months,” said Ambassador Gunnarsson, who is stepping down from his chair role at the end of July. The “vast majority of members”, the chair said, saw value instead in focusing on the entry into force and implementation of the Agreement on Fisheries Subsidies adopted in June 2022, which is now awaiting six additional instruments of acceptance for entry into force, and the setting up of the new Committee on Fisheries Subsidies. “A successful start to the work of the Committee on Fisheries Subsidies could serve to build trust and confidence conducive to giving the negotiations on the additional provisions the necessary push forward,” he said. The chair of the Doha agriculture negotiations, Ambassador Ali Sarfraz Hussain of Pakistan, said categorically that “long-standing divergences on substantive issues continue to persist.” Casting doubts over any possible outcome at MC14, the chair said somewhat bluntly: “I have not been able to pick signals from the revealed preferences of the members that can lead me to be optimistic about the unlocking of outcomes on the main agricultural pillars” before MC14. He also stated that several ideas such as securing a mini-package at MC14 focusing on food security and development support, or on transparency in the application of export restrictions, have met resistance. Ambassador Hussain said that several options for an MC14 outcome remain on the table, including a political declaration reaffirming the value of existing WTO disciplines, establishing a work programme for continued negotiations beyond MC14, and an agreement on comprehensive disciplines on all negotiating pillars. “My objective remains to have by the end of September a better sense of what could constitute the best path forward, including the nature of any outcome we can aim for at MC14,” he added. The chair of the negotiations on trade and development, Ambassador Kadra Hassan of Djibouti, said that while the work “remains challenging, as much as we are making incremental progress at this juncture, it is important that we focus on identifying elements for possible outcomes.” She said that she was encouraged by discussions on the implementation of special and differential treatment provisions in the Agreements on Sanitary and Phytosanitary Measures and Technical Barriers to Trade. “We are approaching MC14 fast,” Ambassador Hassan said. “I urge all members to continue their efforts and maintain momentum as we approach MC14.” In a written report to members, Ambassador Adamu Mohammed Abdulhamid of Nigeria, the chair of the Doha services negotiations, said there was broad recognition of the growing importance of services in world trade and the need to respond to the call of ministers at MC13 in 2024 to reinvigorate work at a meeting of the negotiating group that took place last month. At the TNC meeting, several members suggested whether the duration of the WTO’s four-day 14th ministerial conference could be reduced and whether the list of “deliverables” for the conference could be finalized during the month of October, said people familiar with the discussions. The DG maintained that Cameroon’s preparation for MC14 is progressing well, though she cautioned that some members appear to be overbooking hotel rooms, which could cause a crunch, said a participant who asked not to be quoted. +
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