A group of World Trade Organization (WTO) members is calling for urgent reform at the intergovernmental organisation in areas including trade policy transparency, negotiation and dispute settlement.
In a joint communique following a two-day meeting in Ottawa last week, the 13 members said that the current situation at the WTO was “no longer sustainable”.
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Last month, G20 trade ministers acknowledged the “urgent need” to improve the WTO to face current and future challenges, while the European Union presented an initial set of ideas to modernise the body in order to make “international trade rules fit for the challenges of a global economy.”
In the statement following last week’s meeting, the 13 members – not including the US and China – outlined three areas they intend to focus on as part of an emerging WTO reform effort: a functioning dispute settlement system, a reinvigorated negotiating function, and more transparency into members’ trade policies.
They explained that the rules-based multilateral trading system embodied by the WTO has helped foster “an unparalleled chapter in global prosperity, growth and job creation around the world,” but added that the system now faces “unprecedented challenges.”
“We are deeply concerned by recent developments in international trade, particularly the rise in protectionism, which negatively affect the WTO and put the entire multilateral trading system at risk,” they say. “We note growing trade tensions are linked to major shifts in the global trading landscape. We also note the difficulties to achieve outcomes under the negotiating pillar. We share a common resolve for rapid and concerted action to address these unprecedented challenges and to restore confidence.”
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By GlobalDataThey highlighted “deep concern” over the continued vacancies in the Appellate Body, given the dispute settlement system is “a central pillar” of the WTO.
“We therefore emphasise the urgent need to unblock the appointment of Appellate Body members. We acknowledge that concerns have been raised about the functioning of the dispute settlement system and are ready to work on solutions, while preserving the essential features of the system and of its Appellate Body.”
The members also called for the need to reinvigorate the negotiating function of the WTO, and to update rules “to reflect 21st century realities”, such as the Sustainable Development Goals.
“Addressing modern economic and trade issues, and tackling pending and unfinished business is key to ensuring the relevance of the WTO. This may require flexible and open negotiating approaches toward multilateral outcomes.”
A need to strengthen the monitoring and transparency of members’ trade policies was also outlined, amid concerns with the overall record of compliance by WTO members with their notification obligations
“We seek a fully operational WTO that benefits all. Our objectives will only be reached through sustained and meaningful political engagement and through dialogue with all WTO members,” they noted.
“The current situation at the WTO is no longer sustainable. Our resolve for change must be matched with action: we will continue to fight protectionism; and we are committed politically to moving forward urgently on transparency, dispute settlement and developing 21st century trade rules at the WTO.”
The members plan to review progress at a second meeting in January 2019.
