WTO Discussions Encounter a Rough Start, Forecasting Limited Progress
The recent World Trade Organization (WTO) ministerial meeting in Abu Dhabi, billed as a “reform ministerial,” faced early challenges indicating a lack of readiness among major trading nations for necessary compromises. The conference aimed to set the stage for updated global trading rules capable of addressing contemporary challenges, including climate change and escalating agricultural and industrial subsidies.
From the outset, WTO Director-General Ngozi Okonjo Iweala tempered expectations, acknowledging global economic fragmentation due to wars and tensions, as well as limited maneuverability arising from elections, particularly in the United States. The first day of negotiations revealed the reluctance of major trading nations to engage in the compromises essential for progress.
Indian Commerce Minister Piyush Goyal arrived late in the proceedings, after his Chinese counterpart Wang Wentao had already left. A shared goal among most attendees was the restoration of the WTO’s ability to resolve trade disputes, a function hindered by the United States blocking appointments to the appeals body, effectively serving as a global trade supreme court.
Norwegian Foreign Minister Espen Barth Eide attempted to broker a compromise that would secure a WTO commitment to return to the dispute resolution system. However, U.S. Trade Representative Katherine Tai rebuffed the effort, leading to an abrupt end to their meeting. While Tai refrained from commenting on the specifics of the encounter, she expressed optimism about ongoing negotiations. WTO members did agree to continue discussions on the matter in 2024.
Amid the challenges, the WTO celebrated the accession of East Timor and Comoros, offering a moment of light relief. The jubilant East Timor delegation even led a conga line around the room in celebration. While the WTO touted these accessions as successes, they also added to the organization’s complexity, bringing its membership to 166 countries. Each member holds veto rights in the consensus-based system, making it challenging to reach agreements. In its nearly 30-year history, the WTO has only achieved two multilateral accords, one addressing bureaucratic red tape and another aimed at curbing fishing subsidies. The hurdles faced at the Abu Dhabi ministerial underscore the significant obstacles to achieving consensus on pressing global trade issues.
