TWN Info Service on WTO and Trade Issues (Jul26/09)
14 July 2026
Third World Network

Trade: WTO reform in a quagmire amid fierce pushback from South
Published in SUNS #10481 dated 14 July 2026

Geneva, 13 Jul (D. Ravi Kanth) -- Amid mounting chaos and fierce opposition from a large majority of members, the chair of the World Trade Organization's General Council (GC) is expected to deliver a brief statement on "WTO reform" at the GC meeting on 14-15 July, said people familiar with the development.

Members have intensified their pushback against the WTO reform proposals addressing "decision-making", "development", "level playing field", and "foundational" issues.

The situation seems to have spiraled out of control after India forcefully challenged how the facilitators framed the guiding questions at an informal Heads of Delegation meeting on 9 July.

India appeared to rebuke attempts to steer the negotiations on the four issues in a direction that ran counter to the members' core concerns, said a person familiar with the development.

Shortly after, the guiding questions were abruptly withdrawn, with the stated promise that they would be reissued later, the person said.

At the time of writing, neither the GC chair nor the facilitators have issued the statements that they had promised, said a trade envoy from a Middle Eastern country.

GC AGENDA

In the restricted GC agenda (Job/GC/513) for the 14-15 July meeting, the GC chair, Ambassador Clare Kelly of New Zealand, outlined her plans.

She previously drew criticism for reportedly placing the negotiations on reform of the dispute settlement system on the proverbial back burner - a move seen as a manoeuver to advance the controversial WTO reform talks spearheaded by the facilitator Ambassador Petter Olberg of Norway, said people familiar with the development.

Ambassador Olberg's seemingly opaque and heavy-handed approach to forcing the WTO reform discussions forward has undermined the very credibility of the talks.

These negotiations are backed by the United States, the European Union, China, and other members of the "Friends of the System" group coordinated by Switzerland, said people familiar with the development.

In the restricted GC agenda, seen by the SUNS, Ambassador Kelly, in reference to the agenda item "WTO Reform - Statement by the Chairperson", stated: "Under item 7, I will deliver a brief statement updating the membership on developments since the last General Council meeting. Thereafter, I will open the floor to delegations. The General Council is expected to take note of my statement, and any statements made by delegations. Given the proximity to the recent informal Heads of Delegation meeting, no lengthy discussion is expected under this item."

However, in the interest of transparency, the GC chair must clarify for the official record exactly what transpired at last week's informal Heads of Delegation meeting, said a trade envoy, who asked not to be quoted.

Furthermore, the GC chair must abandon her "take-it-or-leave it" approach, which threatens to plunge the WTO into "an irretrievable abyss", the envoy added.

"If there is such vehement opposition to changing the decision-making by consensus principle to decision-making by adopting flexible approaches, as suggested by Switzerland; institutionalizing plurilateral negotiations by giving a short shrift to the consensus principle; foisting "level playing field" issues concerning subsidies for industrial goods but not agricultural products; atrophying special and differential treatment; and last but not least, changing the foundational principles enshrined in the Marrakesh Agreement that established the WTO in 1995, then the GC chair must abandon her approach of intense discussions from 20 July," the envoy said.

QUAGMIRE

Meanwhile, a small group of countries operating within the "reform casino" - who are now insisting that discussions proceed exclusively on the basis of written proposals - appears to be entirely "tone-deaf" to the growing turmoil surrounding the issue of WTO reform, said another trade envoy, speaking on condition of anonymity.

Essentially, the WTO reform initiative has devolved into a quagmire destined to reproduce the same exhausting stalemates, the envoy said.

Rather than issuing a written statement on WTO reform, the GC chair instead released a two-page document, titled "Follow-up to outcomes of ministerial conferences: MC14 (Yaounde); MC13 (Abu Dhabi); MC12 (Geneva, co-hosted by Kazakhstan); MC11 (Buenos Aires); MC10 (Nairobi); and MC9 (Bali)".

In a restricted document (Job/GC/511), seen by the SUNS, the GC chair claims that "this agenda item allows us to continue our follow-up on the outcomes adopted at Ministerial Conferences in an inclusive and transparent manner."

Ambassador Kelly said that she will "provide updates from the various Councils and Committees that are under the stewardship of the Chairpersons of regular WTO Bodies."

The rather selective, patchwork account further shows that a comprehensive assessment of the continued hurdles obstructing progress on the mandated issues and the Doha agenda is missing, said an African trade envoy, who asked not to be quoted.

Even as the WTO Director-General continues to operate as the chair of the Doha Trade Negotiations Committee (TNC), she lacks the locus standi to do so unless she is acting under the Doha work program established in December 2001, said a former trade envoy who participated in the Doha meeting.

Nevertheless, the GC chair offered the following updates.

Referring to development and Aid for Trade, she said that "this year we are marking the 20th anniversary of Aid for Trade. It coincides with the 10th Global Review, which will take place at the WTO on 29-30 October 2026. We will have the opportunity to take stock of the impact of trade support, strengthen partnerships, and explore solutions for emerging trade and development needs".

She appears to have selectively highlighted development and Aid for Trade to subtly allude to the Chinese proposal on investment facilitation - a move that seemed disingenuous on the part of the GC chair, said a trade envoy.

Notably, the incorporation of the Investment Facilitation for Development Agreement (IFDA) into Annex 4 of the WTO Agreement was blocked by India at MC14 in Yaounde on procedural and systemic grounds.

More critically, the GC chair's seemingly glaring silence regarding the African Group's longstanding proposal - dating back to the WTO's fourth ministerial conference in Doha, Qatar in November 2001 - to make Special and Differential Treatment (S&DT) simple and effective raises serious questions.

This proposal has been repeatedly blocked by the US, the EU, and other developed countries, the African envoy said.

Currently, under the umbrella of WTO reform, one major industrialized country has reportedly advocated for doing away with S&DT entirely, the African envoy added.

On the 10th global review of Aid for Trade, the GC chair noted that "over the span of two days, Members are organising around 30 sessions, which showcase partnerships in action."

She said: "Together with two thematic plenaries, one focused on LDCs and another on partnerships, as well as regional spotlights featuring international financial institutions, beneficiaries, and development partners, these sessions provide a platform for dialogue on the future of trade and development cooperation".

The GC chair added that "discussions will cover a broad range of issues, including services, digital trade and artificial intelligence, and innovative forms of cooperation, including with the private sector and South-South partnerships. Members have also put forward over 20 impact stories which showcase the impact of trade support across various areas ranging from trade facilitation and value-chain development to regional integration and emerging priorities. I would like to thank all Members for their active engagement, which has been instrumental in shaping diverse and forward-looking discussions on trade and development challenges of our times."

Much of the above rhetoric reads more like propaganda than a genuine attempt to address the core demands of developing countries to improve S&DT, the African envoy said.

TRADE IN SERVICES

The GC chair provided a seemingly arcane account on "trade in services", stating that "the Council for Trade in Services (CTS) met last on 4 June. Members continued to report on the findings drawn from the information gathered on LDC services exports and the utilisation of the LDC Waiver preferences."

The denial of the LDC services waiver remains a dark stain on the powerful countries that have reneged on their promises, said a trade envoy who asked not to be quoted.

The GC chair also noted that "the LDC Group also shared some of the challenges its service suppliers had identified, and urged Members to conclude the review of the Waiver at the next Council meeting and start considering next steps."

However, there was no ministerial outcome on trade in services at MC13 in Abu Dhabi in February 2024  - only a chair's statement, which carries no legal obligation for members to follow, according to several trade envoys, who asked not to be quoted.

The GC chair said "areas mentioned for possible further work comprised the services aspects of e-commerce, good regulatory practices, the green services economy, and the recognition of qualifications."

Notably absent from the GC chair's account was any mention of the movement of short-term services providers.

Several industrialized countries treat this purely as an immigration issue while imposing an unprecedented scale of coercive hurdles, said trade envoys, who asked not to be quoted.

The GC chair did note efforts regarding "GATS notifications and other information sources and to exchange experiences, with the objective of enhancing transparency without creating any new obligations for Members."

AGRICULTURE

Turning to agriculture, the GC chair said, "the implementation of the Bali Decision on Public Stockholding for Food Security Purposes has continued to be monitored in the Committee on Agriculture, primarily through the Q&A-based review of domestic support notifications submitted by the only developing country Member that has invoked the Decision since 2018, with the latest notification for 2024 reviewed at the Committee's most recent meeting in May 2026."

Without naming India - which faced severe criticism at the last meeting of the Committee on Agriculture - the GC chair said, "the invocation of the Bali Decision by that Member for rice, together with the associated price support calculation methodology, was also addressed in a counter-notification submitted by a group of Members [the US, Australia, Costa Rica, and Paraguay among others] in March 2026, which the Committee considered at the same May 2026 meeting."

The GC chair, however, seemingly remained utterly silent on the demands of a large majority of developing countries, including India, for delivering on the permanent solution on public stockholding (PSH) programs for food security purposes as agreed at MC9 and slated for conclusion at MC10, said trade envoys who asked not to be quoted.

Ambassador Kelly seemingly offered a one-sided account on "the Nairobi Decision on Export Competition and the Bali TRQ Decision", stating that "the Committee at its May 2026 meeting held detailed deliberations on follow-up to the agreements and decisions adopted during 2024-25 concerning revised notification and transparency requirements in the two policy domains."

RULES OF ORIGIN

On rules of origin, the GC chair said "since the last update in December 2025, the Committee on Rules of Origin met formally on 11-12 May and held an information session on Trade Facilitation and Rules of Origin on 12 May 2026."

Ambassador Kelly said, "The Committee continued its work to strengthen transparency in non-preferential rules of origin, with new notifications from Nigeria, the Kyrgyz Republic, Canada, Malaysia, Norway, and the Russian Federation."

On preferential rules of origin for least developed countries, the GC chair said, "the Committee received updates from the Secretariat on notifications and utilization data, as well as from the United Kingdom on recent changes to its Developing Countries Trading Scheme."

Ultimately, the GC chair's account of past meetings appears to fall far short of a credible, comprehensive record, reading instead as a selectively curated, feel-good narrative, said several trade envoys who asked not to be quoted. +