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TWN
Info Service on WTO and Trade Issues (Jul25/23) Geneva, 18 Jul (D. Ravi Kanth) — The World Trade Organization’s upcoming 14th ministerial conference (MC14), scheduled to be held in Yaounde, Cameroon in March 2026, appears to hang in the balance, and could be shortened to two days merely to discuss “WTO reform”, though a final decision on this may only be taken at the WTO’s General Council meeting on 22-23 July, said people familiar with the development. MC14 has been originally scheduled to take place over four days, from 26 to 29 March 2026, against the backdrop of several unresolved issues that remain unaddressed since the 13th ministerial conference (MC13) held in Abu Dhabi in March 2024. Even though the WTO’s Director-General, Ms Ngozi Okonjo-Iweala, indicated at the Doha Trade Negotiations Committee (TNC) meeting on 15 July that delegations are booking hotel rooms for longer than the four-day meeting ,which could cause a crunch, she appears to be glossing over the likely change in the duration of the ministerial conference, said a person familiar with the development. The possible change in the duration of the conference appears to be stemming from the allegedly incalculable damage being caused by the reciprocal tariff regime of the Trump administration, which in a single stroke, has seemingly brought “the edifice of the WTO crashing to the ground,” said people familiar with the development. The DG has remained silent on the continuing unilateral tariffs being announced by the Trump administration, including the latest threat to send letters to more than 150 small countries assigning them a tariff rate of 10% or 15%. US President Donald Trump told reporters on 16 July that, “We’ll have well over 150 countries that we’re just going to send a notice of payment out” detailing the tariff rate. “It’s all going to be the same for everyone, for that group,” President Trump said at a White House meeting with the Crown Prince of Bahrain, Salman bin Hamad Al Khalifa. “They’re not big countries, and they don’t do that much business. Not like the ones we’ve agreed with, like China, like Japan,” he said, adding: “We’re very close to a deal with India where they open it up.” In an interview with Real America’s Voice broadcast later on 16 July, President Trump said the tariff rate for the more than 150 countries would be “probably 10 or 15%, we haven’t decided yet.” WTO REFORM Meanwhile, the facilitator tasked with overseeing the discussions on “WTO reform” has highlighted several controversial issues, including the continuation of the principle of decision-making by consensus, and “differentiation” among developing countries for availing of special and differential treatment (S&DT), which are expected to be discussed on 18 July, said people familiar with the development. With no likely “deliverables” at MC14 on agriculture, the “second wave” of the Agreement on Fisheries Subsidies or “Fish 2”, and other development issues, attempts are allegedly underway to focus only on “deep reform”, as the DG had mentioned at the TNC meeting on 15 July, said people familiar with the development. While the US did not make any detailed statement at the TNC meeting, merely indicating that it would make a substantial statement at the General Council meeting on 22 July, China underscored the need for a “solution- oriented process”, said people familiar with China’s intervention at the TNC meeting. In its intervention, China said, “progress is not encouraging”, adding that “the current atmosphere is not in favour of negotiations and makes our work here more challenging.” China said that the developments in the “Fish 2” negotiations are a “case in point”, while fully aligning with the assessment of the chair of the Doha fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, at the TNC meeting. China said that it shares “the disappointment that the negotiation is even further from the finish line today.” However, China argued that “headwind(s) should not be an excuse to give up our work in WTO, but as an imperative to redouble our efforts with determination and courage for the coming MC14 and the way forward.” Referring to the possible MC14 “deliverables”, China said that there are “concerns over the increasingly unpredictable and unstable trade environment.” However, it made no mention of the US reciprocal tariffs having apparently turned the trade environment sour, as it did at some of the previous meetings. “We believe MC14 represents a critical juncture for Ministers to reaffirm, at the political level, their commitment to the WTO, including principles such as MFN [most-favoured-nation] treatment and non-discrimination of Article I of GATT,” China said. It added that “a clear message must be sent to the global community that at least the remaining 74% of world trade will continue to adhere to WTO rules.” China said, “predictability and stability are indispensable for trade and investment, and this is precisely what the WTO must – and can – deliver.” Further, China wants members to “look at what is doable and what matters to the African continent and LDCs for MC14.” Although attempts to incorporate the Investment Facilitation for Development Agreement (IFDA) into Annex IV of the WTO Agreement remain blocked on procedural and systemic grounds, China suggested that “IFD and development, including food security are two areas that should land in some way.” China said “while members may hold entrenched positions, demonstrating flexibility on issues that universally benefit stakeholders – particularly LDCs and African members -without worsening off any member is now imperative.” According to China, “WTO reform should also be part of MC14.” It said that “how far, how much and how substantial [the reform should be]” will depend “on the discussions in the coming months.” “However, it should be a solution-oriented process to make the WTO function,” China said. It argued that “it is not a process to solve specific topics that cannot be got at the negotiation table, but a process to improve the working mechanism and members’ behaviour to make things happen and deliver.” “Labelling approach will not lead to any outcome,” China cautioned. +
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