TWN Info Service on WTO and Trade Issues (May26/01)
5 May 2026
Third World Network

Trade: WTO on the brink as DG struggles to reignite reform track
Published in SUNS #10435 dated 4 May 2026 

Yerevan, 30 Apr (D. Ravi Kanth) -- Ahead of the World Trade Organization's General Council meeting on 6-7 May, the seemingly embattled WTO Director-General is struggling to come to terms with the failed WTO's 14th ministerial conference (MC14), whose outcome has all but derailed further work on "WTO reform" and other critical issues, according to people familiar with the development.

For the first time, two moratoriums - one on customs duties on electronic transmissions and another on TRIPS non-violation and situation complaints - have remained suspended since 31 March.

The suspension stems from a lack of consensus on these issues at MC14, which concluded in Yaounde, Cameroon, more than a month ago.

There is no clarity on how to resume work on WTO reform, which failed to garner consensus at MC14.

Work on the reform of the WTO's dispute settlement system also needs to be restarted, having remained dormant since the WTO's 13th ministerial conference (MC13), which concluded in Abu Dhabi on 2 March 2024.

Although MC13 also failed to produce any credible outcomes - except for extending the two moratoriums on e-commerce and TRIPS non-violation and situation complaints - the situation has never been as grim as it is now following MC14, said people familiar with the informal discussions held since the Yaounde meeting.

There is also no clarity on how to begin work on agriculture, which was stymied by the United States at MC14, as reported in the SUNS.

Even work on a "Fish 2" agreement - regarding proposed additional provisions on disciplines to address subsidies contributing to overcapacity and over-fishing  - remains in limbo due to the lack of any decision at MC14.

Against this backdrop, the Director-General, Ms Ngozi Okonjo-Iweala, could find herself in a quandary, given the ongoing economic turmoil fueled by the worsening conflict in the Middle East, said people who asked not to be quoted.

More importantly, attempts to produce outcomes that are "palatable" to the US - which has demanded a four-year extension of the moratorium on customs duties on electronic transmissions - appear to be triggering a backlash among members.

Many believe the US is responsible for the collapse of MC14 with its "maximalist" agenda, said people familiar with the development.

Furthermore, the severe criticisms leveled by the US Trade Representative (USTR), Ambassador Jamieson Greer, against the WTO for failing to deliver the outcomes that the US had sought at MC14 have seemingly caused angst among members, said people familiar with the development.

GC AGENDA

Against this backdrop, the General Council (GC) agenda, contained in a restricted document (WTO/AIR/GC/69), seen by the SUNS, reflects the current state of affairs, with only a few inconsequential decisions scheduled for the 6-7 May meeting.

The agenda contains no major decisions beyond some process-related issues. Several items are listed for "action/ decision."

They include:

"Follow-up to MC14 (Yaounde)

1. Statement by the Chairperson of the General Council

2. Report by the Chairperson of the Trade Negotiations Committee and Director-General

For action/decision

3. Committee on Budget, Finance and Administration (CBFA) - Report on Meeting of 2 March 2026 (WT/BFA/233) - Statement by the Chairperson of the CBFA

4. Request for Observer Status by the African Union - Communication from Mozambique on behalf of the African Group (WT/MIN(26)/9 - WT/GC/W/995) - Request from Namibia on behalf of the African Group

5. Follow-Up to Outcomes of Ministerial Conferences: MC13 (Abu Dhabi), MC12 (Geneva, co-hosted by Kazakhstan), MC11 (Buenos Aires), MC10 (Nairobi), and MC9 (Bali) - Statement by the Chairperson of the General Council

6. Work Programme on Small Economies - Report by the Chairperson of the Dedicated Session."

The agenda also includes an item tabled by Uruguay on a "Dialogue on Emerging Agricultural Trade Issues" - Communication from Australia, Brazil, Canada, Colombia, Costa Rica, Iceland, Liechtenstein, New Zealand, Peru, Switzerland, Ukraine, and Uruguay.

The co-sponsors had issued the following statement at MC14 on 29 March:

"We, the co-sponsors, gathered in Yaounde for the WTO's 14th Ministerial Conference, issue this statement:

Building upon the activities carried out under the Dialogue on Sustainable Agriculture in the Multilateral Trading System, including the WTO Retreat on Sustainable Agriculture in the Multilateral Trading System, held on 5-6 May 2025;

Acknowledging the WTO's role in facilitating cooperation among Members to ensure WTO-compliant policies and measures and rules-based, inclusive, non-discriminatory and transparent agricultural trade;

Recognizing that agriculture faces the triple challenge of ensuring food security and nutrition for a growing population, providing livelihoods for farmers and others in agrifood systems, and improving the environmental sustainability of the sector;

Noting that, in response to these challenges, many Members are adopting policy instruments aimed at enhancing resilience, productivity, efficiency and the sustainable use of natural resources, including soil, water and biodiversity;

Recognizing that agricultural production and trade are being reshaped by these evolving policy approaches, which may reflect legitimate public policy objectives and contribute to the strengthening of agrifood systems;

Acknowledging that, where such policies have trade effects, the WTO can play an important role in coordinating and supporting Members' efforts to both promote sustainable agriculture development, and to avoid or reduce, inter alia, unfair competition, trade diversion or depression, regulatory divergence, higher compliance costs, and variations in access to markets;

Recognizing the importance of ensuring that the WTO remains the central forum in which Members address the role of international agricultural trade and trade policy, including in light of emerging challenges and opportunities, complementing the work of other international fora;

Recognizing Members' interest in examining whether current approaches to agricultural trade policies and measures remain aligned with the objective of maintaining open, fair and predictable trading conditions, including enabling developing country Members to competitively participate in international markets, while preserving access to the policy tools necessary to pursue legitimate public policy objectives, without undermining the ongoing work of the WTO Committees, including the Committee on Agriculture in Special Session;

In view of the above, in order to enhance the WTO's responsiveness to emerging agricultural trade issues, and to safeguard the organization's continued effectiveness and relevance;

We agree:

1. To advance open-ended deliberations through a Dialogue on Emerging Agricultural Trade (EAT) issues, to be reported to the General Council, with a view to supporting well-functioning agricultural markets, taking into account sustainable development and diversity of agricultural systems, production conditions and development needs and challenges across the Membership.

2. Such deliberations may include, inter alia:

a. Transparency and information-sharing on emerging agricultural policies and measures and their impacts on agricultural markets;

b. How emerging agricultural policies and measures affect production, market conditions, natural resources, food security and development;

c. Members' ability to pursue legitimate public policy objectives without unnecessary trade impacts or discrimination;

d. How agricultural and trade policies impact environmental and social outcomes;

e. Sectoral or value-chain approaches, where Members identify shared interests and concerns in specific agricultural areas;

f. How emerging agricultural policies and measures interact with WTO provisions, and relevant commitments under multilateral environmental agreements; and

g. Exchange of views on opportunities and challenges for cooperation, capacity building and assistance, including in areas such as rural extension services, digital and agronomic solutions, technology, innovation and knowledge-sharing, science-based approaches, good agricultural practices, consistent with Members' rights and obligations under the WTO Agreements.

3. The Dialogue will be open to the active contribution of all Members and carried out by means of a regular series of events organized by Members, which aim to be neutral and factual so as to develop a shared evidence- based understanding. Members may collaborate with stakeholders, including other international Organizations, the private sector and research institutions.

4. The Members issuing this statement will collectively organise a mid-term retreat in March/April 2027, taking stock of the sessions over the previous year; a final retreat before MC15, taking stock of the sessions and lessons learned over the past two years; and formulate a report for Ministers at MC15, in consultation with WTO Members as appropriate."

Meanwhile, Korea also tabled an item for discussion on "Preserving the Spirit of Open and Predictable Trade: Collective Restraint Against Actions Undermining Trade Liberalization."

In short, the GC meeting does not appear poised to chart a way forward for the WTO to get back on track - raising questions about the organization's very raison d'etre, said people familiar with the development. +