TWN Info Service on WTO and Trade Issues (Jul26/01)
2 July 2026
Third World Network

Trade: GC chair brings transparency & accountability to WTO reform
Published in SUNS #10473 dated 1 July 2026

Geneva, 30 Jun (D. Ravi Kanth) -- The chair of the World Trade Organization's General Council (GC) has notably injected greater transparency and inclusiveness into the discussions on WTO reform now underway under the General Council's oversight, said people familiar with the development.

This marks a sharp departure from the opacity and issue-conflation that characterized the approach of several industrialized countries - particularly the so-called "Friends of the System" group - under the previous facilitator, Ambassador Petter Olberg of Norway.

In contrast, GC chair, Ambassador Clare Kelly of New Zealand, has anchored the process in the principle of accountability and insisted on a member-driven framework - elements conspicuously absent in the earlier phase of the talks, trade envoys said.

People familiar with the development indicated that while the core issues and the unresolved mandates from prior ministerial meetings remain largely sidelined - to the detriment of developing and least-developed countries - the WTO reform discussions are now being elevated to subsume virtually all other WTO business.

Concurrently, attempts are being made to sideline the crucial negotiations on the reform of the dispute settlement system (DSS), pushing them to the proverbial back burner so that developing and least-developed countries cannot link them to the WTO reform discussions that seek to fundamentally reshape the WTO's multilateral architecture and turn it into a plurilateral framework driven by a "might-is-right" rationale, according to people familiar with the development.

Against this backdrop, the GC chair appears to have injected several constructive elements into the conduct of these controversial WTO reform discussions, according to the document Job/GC/Reform/1 issued on 26 June.

Following the backlash against the previous facilitator's approach, the current GC chair has ensured that the WTO reform discussions fall squarely under the General Council's full purview.

She states: "as Ministers agreed at MC12 and MC13 and as discussed by them at MC14, WTO Reform work continues being conducted under the authority of the General Council," while "reform of the dispute settlement system is undertaken under the auspices of the Dispute Settlement Body (DSB)."

According to the GC chair, "the reform process shall remain Member-driven, open, transparent, and inclusive, and will take into account the interests of all Members. Decision-making authority remains exclusively with Members."

Commenting on the nomination of the "WTO Reform facilitators," the GC chair states: "at this stage Members are ready to continue focusing their substantive work on the areas explored by Ministers at MC14, namely: (i) foundational issues; (ii) decision-making; (iii) development; and (iv) level playing field issues - with the understanding that, while each area could progress at its own pace, work in all four areas would start and be conducted in parallel. Additional areas could be identified as the process evolves."

To recall, no consensus was reached on any of the four proposed reform issues at the WTO's 14th ministerial conference (MC14) in Yaounde, Cameroon.

Furthermore, the mandate for WTO reform was clearly set out in the MC12 outcome document issued at the Geneva ministerial conference on 17 June 2022.

It reads: "We commit to work towards necessary reform of the WTO. While reaffirming the foundational principles of the WTO, we envision reforms to improve all its functions. The work shall be Member-driven, open, transparent, inclusive, and must address the interests of all Members, including development issues. The General Council and its subsidiary bodies will conduct the work, review progress, and consider decisions, as appropriate, to be submitted to the next Ministerial Conference."

On the reform of the dispute settlement system, the MC12 outcome document states: "We acknowledge the challenges and concerns with respect to the dispute settlement system including those related to the Appellate Body, recognize the importance and urgency of addressing those challenges and concerns, and commit to conduct discussions with the view to having a fully and well-functioning dispute settlement system accessible to all Members by 2024."

In some respects, the current four proposed reform topics appear somewhat inconsistent with the MC12 mandate, particularly as no outcome document emerged from MC13 in Abu Dhabi or MC14 in Yaounde, Cameroon.

The GC chair proposed "to rely on the assistance of one facilitator for each of the four reform areas," adding that she has "further identified one other facilitator, to work on other issues as these arise."

She announced the nomination of five facilitators "guided by Members' views about the importance of ensuring an appropriate balance of perspectives, including balanced representation between regions, levels of development and size of economy."

The five facilitators are: Ambassador Ms Sumathi Balakrishan of Malaysia on "foundational issues"; Ambassador Mr Katsuro Nagai of Japan on "decision-making"(notably, Japan is among those seeking to alter the principle of consensus-based decision-making); Ambassador Ms Nthisana Motsete-Phillips (Botswana) on "development"; Ambassador Mr Elmer Jose German Gonzalo Schialer Salcedo of Peru on "level playing field issues"; and Ambassador Mr Kairat Torebayev (Kazakhstan) on "any new issues arising."

While some nominees appear new to the issues they are tasked to facilitate, it is critical to ensure no conflicts of interest arise in the preparation of reports, said a trade envoy who requested anonymity.

The GC chair states: "the role and designation of facilitators may be reviewed at the beginning of the term of each new Chairperson of the General Council, as necessary. In addition, if a facilitator were to become unable to perform their functions for a longer period, a new facilitator may need to be designated."

PRINCIPLES

More importantly, the GC chair has laid out a clear set of "principles," specifying that "the General Council Chairperson will oversee, coordinate and drive forward the overall reform process and ensure progress and coherence across all areas."

The GC chair "shall report regularly on progress to the General Council."

Under the principles for overall conduct of work, the GC chair states that "facilitators will conduct work towards tangible outcomes on WTO Reform in their area on the basis of Members' written submissions and oral contributions."

Ambassador Kelly emphasizes that "in carrying out their responsibilities, facilitators shall serve in a personal capacity, act impartially and objectively, bearing in mind that the reform process is Member-driven, open, transparent, inclusive, and should address the interests of all Members."

The GC chair maintains that "Facilitators will remain accountable to, and report regularly to, the Chairperson of the General Council and through the Chairperson to the membership" and "in their reports, facilitators will be expected to reflect all emerging positions, that is, areas of convergence and differing views."

The GC chair has seemingly advanced the notion of "transparency and inclusiveness" in the WTO reform process, emphasizing that: "Facilitators shall ensure transparency and inclusiveness, while respecting the intergovernmental and Member-driven character of the WTO."

Moreover, "Facilitators are expected to conduct their work in full cooperation and collegiality."

According to Ambassador Kelly, "the General Council Chairperson and the facilitators will work closely and regularly coordinate efforts in addressing cross-cutting issues and ensure coherence of work in the various areas."

The GC chair says that she "shall report regularly to the General Council on these efforts."

More importantly, the GC chair acknowledged "the importance that Members attach to Dispute Settlement Reform and its linkages to broader WTO Reform," adding that she will "regularly coordinate with the Chairperson of the Dispute Settlement Body."

CONDUCT OF WORK

Given the capacity constraints among members - particularly smaller missions with limited staff - the GC chair states: "to ensure that all Members have an opportunity to participate effectively in reform discussions, I propose maintaining an indicative calendar guided by the following considerations:

a. Avoiding scheduling conflicts, to the extent possible;

b. Securing time and meeting space for each reform area with the participation of the full Membership, as the principal forum for discussion of that issue;

c. In addition, providing facilitators with the flexibility to engage with delegations in different configurations as necessary, whilst maintaining transparency, including through hybrid meetings and listening-in capability as appropriate;

d. Holding regular informal transparency Heads of Delegation (HoD) meetings, chaired by the General Council Chairperson, at which progress reports across all reform areas will be presented by facilitators and Members discuss the way forward;

e. Regularly reporting at meetings of the General Council to take stock of progress; and

f. Allowing sufficient time between meetings for Members to undertake their own outreach, internal consultations, and preparations for subsequent sessions."

At the informal Heads of Delegation meeting on 26 June, the GC chair announced an "indicative and evolving calendar for the rest of 2026, with indicative checkpoints."

She noted: "several Members indicated that it would be helpful to establish indicative checkpoints or milestones throughout the process, with senior officials participating as necessary, to provide opportunities to take stock of progress, maintain momentum, and offer strategic guidance where necessary."

The checkpoints include:

* December 2026 General Council;

* February 2027 General Council (which is the handover of the General Council Chairpersonship); and

* a possible midway review by Ministers in 2027 (which, of course, does not preclude Members from hosting their own Ministerial-level events to advance the process).

The GC chair informed members that "the WTO Reform webpage will reflect all reform proposals and the work in all areas as it evolves. The webpage dedicated to Dispute Settlement Reform will be hyperlinked from the WTO Reform webpage." +