Friday, April 25, 2025

Paving the Future: Urgent WTO reforms in response to global trade challenges

The urgency of deepening discussions on WTO reform and considering fundamental changes to the organization’s structure in light of current global challenges was a key theme at the WTO General Council meeting on February 18-19. These reform discussions were officially initiated at the WTO’s 12th Ministerial Conference (MC12) in 2022.

“We are facing a new reality,” Ambassador Ølberg, the outgoing Chair of the General Council, emphasized to members. “Some of our fundamental values and principles are being challenged. It is no longer business as usual. Now is not the time for entrenched positions and rehearsed talking points. We must engage in real dialogue.”

Ambassador Ølberg underscored that this new reality necessitates comprehensive WTO reform. At MC12, for the first time, WTO members agreed to undertake a thorough review of the organization’s functions to ensure it remains capable of addressing both the challenges and opportunities presented by today’s dynamic global trade environment.

“We must embrace real, substantive reform—not incremental changes,” he asserted. “Only then can the WTO have a viable future. It is up to us.” Quoting Bob Dylan, he warned members, “The times, they are a-changing.”

As the WTO approaches its 30th anniversary, many members reiterated the importance of accelerating and deepening reforms during various agenda discussions at the General Council meeting. Ambassador Saqer Abdullah Almoqbel of Saudi Arabia, who assumed the role of General Council Chair at the meeting’s conclusion, acknowledged both the challenges and opportunities ahead.

“The global trading landscape is undergoing profound shifts—driven by economic uncertainty, geopolitical tensions, technological advancements, and the pressing need for sustainable and inclusive growth,” Ambassador Almoqbel stated. “These changes require us, as a collective, to work with renewed vigor and unity to ensure that the WTO remains a pillar of the rules-based multilateral trading system.”

Looking ahead to the WTO’s 14th Ministerial Conference (MC14) scheduled for March 2026 in Cameroon, Ambassador Almoqbel expressed his aspiration for the event to be a “transformative milestone, delivering tangible outcomes, reinforcing shared values, and strengthening the WTO’s relevance in an increasingly complex global economy.”

During the meeting, Director-General Ngozi Okonjo-Iweala also emphasized the necessity of WTO reform.

“This is an opportune moment for serious reflection on the system—evaluating what works, what does not, and how we can reform it,” she told members. “While reforms have been underway in Geneva, particularly through ‘reform by doing,’ it is time to expand the depth and breadth of these efforts. We must thoroughly reassess the WTO’s structure to ensure it meets the demands of 21st-century global trade.”

She proposed that an independent panel of eminent persons, led by a respected political leader and comprising experts in trade and political economy, conduct this comprehensive evaluation. WTO members would have the opportunity to nominate individuals for the panel, ensuring balanced representation while maintaining the group’s independence.

The panel’s findings or an interim report could be presented to ministers at MC14, depending on the progress made, DG Okonjo-Iweala suggested. She noted that similar initiatives were undertaken by former GATT and WTO Directors-General Arthur Dunkel and Supachai Panitchpakdi, though at a more technical level. Additionally, a recent development retreat saw members advocating for such a reform initiative, reinforcing the need for a fresh, independent review of the WTO’s structure and functions.

As the WTO navigates an era of unprecedented change, the call for comprehensive and transformative reform has never been clearer. The road to MC14 offers a critical window for the organization to redefine itself and secure its role as a cornerstone of global trade governance.

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