Modern Australian
Men's Weekly

.

WTO conference ends in division and stalemate – does the global trade body have a viable future?

  • Written by Jane Kelsey, Emeritus Professor of Law, University of Auckland, Waipapa Taumata Rau

The 13th World Trade Organization (WTO) ministerial conference in Abu Dhabi has failed to resolve any issues of significance, raising the inescapable question of whether the global trade body has a future.

The three-day meeting was due to end on February 29. But late into a fourth extra day, the 164 members were struggling to even agree on a declaration, let alone the big issues of agriculture, fisheries and border taxes on electronic commerce.

The closing ceremony was sombre, and the ministerial declaration bland, stripped of the substantive content previously proposed. Outstanding issues were kicked back to the WTO base in Geneva for further discussions, or for the next ministerial conference in 2026.

Briefing journalists in the closing hours, an EU spokesperson noted how hard it would be to pick up the pieces in Geneva after they failed to create momentum at the ministerial conference. She predicted:

[Trade] will be more and more characterised by power relations than the rule of law, and that will be a problem notably for smaller countries and for developing countries.

Restricted access

That imbalance is already evident, with power politics characterising the conference from the start.

There were accusations of unprecedented restrictions on non-governmental organisations (NGOs) registered to participate in the conference. These bodies are crucial to bringing the WTO’s impacts on farmers, fishers, workers and other communities into the negotiation arena.

A number of NGOs have submitted formal complaints over their treatment by conference host the United Arab Emirates. They say they were isolated from delegations, banned from distributing papers, and people were arbitrarily detained for handing out press releases.

Critical negotiations were conducted through controversial “green rooms”. These were where the handpicked “double quad” members – the US, UK, European Union, Canada, China, India, South Africa and Brazil – tried to broker outcomes to present to the rest for “transparency”.

Read more: Privilege or poisoned chalice? As deputy chair at next week’s WTO meeting, NZ confronts an organisation in crisis

Influence of power politics

These powerful countries largely determined the outcomes (or lack of them). The US, historically the agenda-setter at WTO ministerial conferences, appeared largely disinterested in the proceedings, with trade representative Katherine Tai leaving early.

The final declaration says nothing about restoring a two-tier dispute body, which has been paralysed since 2019 by the refusal of successive US Republican and Democratic administrations to appoint new judges to the WTO’s appellate body.

The EU failed to secure progress on improvements to the appeal process. Likely Republican presidential nominee Donald Trump has already announced he would impose massive WTO-illegal tariffs on China if elected.

China, Japan, the US and EU – all big subsidisers of distant water fishing fleets – blocked an outcome aiming to protect global fish stocks, an issue already deferred from the last ministerial meeting.

The six Pacific Island WTO members lobbied tirelessly for a freeze and eventual reduction in subsidies. But the text was diluted to the point that no deal was better than a bad deal.

The EU, UK, Switzerland and other pharmaceutical producers had already blocked consensus on lifting patents for COVID-19 therapeutics and diagnostics, sought by 65 developing countries. A deal brokered in 2021 on COVID vaccines is so complex no country has used it.

Donald Trump flanked by US flags
Breaking the rules: former US president Donald Trump is threatening to impose tariffs on China if re-elected. Getty Images

Domestic and global agendas

India’s equally uncompromising positions also reflected domestic priorities. The 2013 Bali ministerial conference promised developing countries a permanent solution to prevent legal challenges to India’s subsidised stockpiling of food for anti-hunger programmes.

A permanent solution was a red line for India, which faces an election next month and mass protests from farmers concerned at losing subsidies.

Agricultural exporters, including New Zealand, tabled counter-demands to broaden the agriculture negotiations. The public stockpiling issue remains a stalemate, without any real prospect of a breakthrough.

India and South Africa formally objected to the adoption of an unmandated plurilateral agreement on investment facilitation.

The concerns were less with the agreement itself and more with the precedent it would create for sub-groups of members to bypass the WTO’s rule book. This would allow powerful states to advance their favoured issues while developing country priorities languish.

Read more: Why developing countries must unite to protect the WTO's dispute settlement system

Crisis and transformation

The face-saver for the conference was the temporary extension of a highly contested moratorium on the right to levy customs duties at the border on transmissions of digitised content.

Securing that extension (or preferably a permanent ban on e-commerce customs duties) on behalf of Big Tech was the main US goal for the conference. Developing countries opposed its renewal, so they could impose tariffs both for revenue and to support their own digital industrialisation.

The moratorium will now expire in March 2026, so the battle will resume at the next ministerial conference scheduled to be held in Cameroon that year.

But there is every likelihood the current paralysis at the WTO will continue, and the power politics will intensify. As the previously quoted EU spokesperson also mused:

Perhaps the WTO needed a good crisis, and perhaps this will lead to a realisation that we cannot continue like this.

Ideally, that would result in a fundamentally different international institution – one that provides real solutions to the 21st century challenges on which the WTO is unable to deliver.

Authors: Jane Kelsey, Emeritus Professor of Law, University of Auckland, Waipapa Taumata Rau

Read more https://theconversation.com/wto-conference-ends-in-division-and-stalemate-does-the-global-trade-body-have-a-viable-future-224948

Retirement Anchored in Model Boat Building for Waterford’s Doug Unsold

WATERFORD — When Doug Unsold sees his ship come in, it’s usually one he’s crafted with his own hands. The 67-year-old retiree from Waterford ...

The Science Behind Alarm Clocks and Your Circadian Rhythm

Waking up on time isn’t just about setting an alarm—it’s about working with your body, not against it. At the heart of every restful night and...

How to Use Plants to Create a Calming Atmosphere in Your Home

In today’s fast-paced world, cultivating a calm, soothing environment at home has never been more important. Whether you live in a busy urban apar...

How Maths Tutoring Can Help Students Master Maths

Mathematics can be a daunting subject for many students, often causing stress and frustration. However, maths tutoring has proven to be an effective...

Refurbished iPads Are Better Than New Ones (Here's Why)

Image by rawpixel.com on Freepik Apple's refurbished iPad program has quietly become one of the best deals in tech. While everyone obsesses over the ...

Your Guide to Finding the Right GP: What Perth City Doctors Offer Today

Choosing a General Practitioner (GP) is one of the most important health decisions you’ll make. Luckily, Perth’s vibrant CBD now hosts a new ge...

Why Every Mining Operation Needs a Robust Safety Management System

Mining is one of the backbones of the Australian economy, particularly in Western Australia. Back in 2019-20, mining contributed 10.4% of Australia...

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers...

How to Choose the Right Lawyers in Sydney for Your Situation

When faced with a legal issue, selecting the right legal representation can make all the difference. Whether you're dealing with a personal injury, ...

Building a Governance Model for Headless Content Management at Scale

Image by pch.vector on Freepik There's never been a better time to implement a headless content management system (CMS) to gain the flexibility and ...

Understanding Trade Insurance: Essential Protection for Businesses

Image by Drazen Zigic on Freepik In the current economic environment, trade insurance is an important element for companies trading both locally an...

Choosing the Right Timber for External Cladding

Timber cladding is one of those finishes that pulls double duty: it makes a building look warm and welcoming, and it quietly shields the frame from ...

Top Services Offered by Diesel Mechanics in Brisbane

Keeping a diesel vehicle running at its best takes more than the occasional oil change. When you invest in regular specialist care, you protect the ...

Top 5 Benefits of Hiring Professional House Removalists

Moving day should feel like the start of a new adventure, not the end of your patience. Yet once the settlement papers are signed and the champagne ...

Navigating the Digital Landscape: Managed IT Solutions and IT Services in Townsville

As technology advances at an unprecedented pace, companies must adapt to embrace the transformation ahead. With an evolving technology landscape, mana...

Types of Catering You Should Consider for Your Next Event

Choosing the right type of catering service can elevate your event from ordinary to unforgettable. Whether it’s an elegant wedding, corporate func...

Understanding the Benefits of Split System Installation for Your Home

Climate control is essential to maintaining comfort in your home, especially during the extreme temperatures that many regions face. Whether you’r...

Best Aluminium Window Sliding Designs for Natural Light and Airflow

Bringing natural light and airflow into a space is one of the most efficient ways to create a healthy and comfortable home. In Sydney and across Aus...