The General Council meeting opened with a moment of silence for Carlos Perez del Castillo, the former Ambassador of Uruguay to the WTO who passed away in August. General Council chair Saqer Abdullah Almoqbel (Saudi Arabia) noted that Mr. Perez del Castillo played a central role in the WTO during its early days and chaired a number of its key bodies, including the General Council from 2003 to 2004. Many delegations later took the floor to express their condolences on his passing.
Reporting to the General Council in her capacity as chair of the Trade Negotiations Committee, DG Okonjo-Iweala said that in her meetings with leaders, ministers, business, civil society and other stakeholder representatives the “cry for a rethink of the WTO and reforms … is palpable”. “We must think carefully about what works and how to sustain and strengthen it,” she told members.
The Director-General said the multilateral trading system, anchored by WTO rules, underpins the majority of global trade in goods and services and that it fosters standards, protects intellectual property, facilitates technological progress and reduces trade costs. The work of the WTO’s regular bodies is also highly valued by its members.
“We are by no means perfect but it is clear that the WTO provides important tools that are worth preserving,” she added. At the same time, “members must also be candid about the challenges facing this organization” and should consider how to reposition the organization to better take advantage of new opportunities in trade in areas such as services, AI and the digital transformation.”
“There is an expectation that this organization will modernize more with the times,” the Director-General said.
At their 12th Ministerial Conference (MC12) in 2022, WTO members agreed to undertake a comprehensive review of the WTO’s functions. Ministers at MC13 instructed the General Council and its subsidiary bodies to continue this work and report progress as appropriate to MC14.
WTO reform – report by the facilitator
Ambassador Petter Ølberg, the facilitator on WTO reform, provided an update on members’ deliberations since the General Council meeting held in July. He reported that a plenary meeting was convened on 24 September to reignite “collective reflection” on WTO reform and to begin charting a pragmatic path forward. The plenary, he said, served as a transparency exercise, allowing members to hear each other directly in an open format. Consultations took place in parallel.
Ambassador Ølberg noted a high level of engagement across the membership and a broad willingness amongst members to engage constructively while acknowledging that views remain divergent on substance.
The facilitator noted broad support for continuing discussions – between now and the December General Council meeting – structured around the three-track framework previously identified: governance, fairness and issues of our time.
On substance, Ambassador Ølberg highlighted that “decision-making” and “development” were most frequently cited as logical starting points. Decision-making was characterised as a gateway issue, critical to unlocking progress in other areas, including rule making and implementation. Development was viewed as a core pillar of the reform agenda, with a focus on special and differential treatment for developing members.
Looking ahead, the facilitator noted support for the preparation of a Facilitator’s Report to be presented at the General Council meeting in December. The report would aim to summarise discussions to date; identify areas of convergence and divergence; and outline practical options for members’ consideration at MC14. He noted that he would be attending the Group of 20 trade ministers meeting in South Africa where WTO reform is high on the agenda and would hold a transparency session on 14 October to report on the discussions.
Addressing members, Ambassador Ølberg stated: “The reform that everyone claims to support cannot succeed unless some are prepared to cede a portion of national interest for the common good. That is what leadership demands. If you are truly committed to reform that restores trust, fairness and functionality to the WTO, then my appeal is this: as we begin the next phase, rise above the immediate and focus on the long-term goal.”
More than 50 members took the floor, some speaking on behalf of groups, to express their views on the ongoing reform discussions. Many reaffirmed their commitment to engage in the ongoing reform process while expressing their support for the multilateral trading system anchored in the rules and principles of the WTO. While some members put forward ideas in the lead-up to MC14, others underscored readiness to continue discussions beyond MC14. Many members emphasized that the reform process must remain member driven, inclusive and transparent, with development considerations at its core. Others highlighted the need for reforms to enhance the organisation’s effectiveness and flexibility, allowing members to deliver timely and meaningful outcomes.
Related to this, the United Kingdom reported on a conference organised from 1 to 3 October at Wilton Park to discuss the future of the multilateral trading system and WTO reform. The participants included the WTO Director-General and the facilitator as well as representatives from the full cross-section of the membership. The UK said the discussions revealed a very wide divergence of views, divergence in the problems that people saw, and divergence in the value people saw in the WTO; it hoped the frank and open discussions which took place at the conference would contribute to developing ideas in the reform process.
Work Programme on Electronic Commerce — report by the facilitator
In a report submitted to members, Ambassador Richard Brown (Jamaica), the facilitator for the WTO’s Work Programme on E-Commerce, noted the consultations he held with members since the last General Council meeting in July, which included a dedicated discussion on 25 September to take stock of developments. No new submissions have been received since the summer break, he said, although a group of members indicated they were working on a draft proposal, Ambassador Brown reported.
On expectations for MC14, Ambassador Brown reported strong support for the Work Programme and its continuation. In regard to the moratorium on customs duties applicable to electronic transmissions, he said the vast majority of delegations supported its continuation for the stability and predictability of digital trade but that a few members opposed its extension because of revenue and policy space concerns.
More than 20 members took the floor to voice their views on the future of the work programme and the continuation of the e-commerce moratorium.
Investment facilitation for development
On the Investment Facilitation for Development (IFD) initiative, members were once again unable to reach consensus on the request supported by 127 co-sponsors to incorporate the IFD Agreement under Annex 4 of the Marrakesh Agreement establishing the WTO. This marked the tenth time the proposal has been submitted to members for adoption.
Speaking on behalf of all co-sponsors, Chile reiterated the urgent need to incorporate the Agreement into the WTO framework, emphasizing its critical role in facilitating investment inflows and enhancing technical assistance for developing and least-developed countries. It highlighted recent high-level events aimed at consolidating support from partner organizations and promoting the initiative among non-participant members. Chile reaffirmed the co-coordinators’ commitment to continue engaging with members who have objections to its incorporation.
Three members reiterated their reservations about incorporating the IFD Agreement into the WTO multilateral framework, while expressing willingness to engage in constructive dialogue. The General Council chair encouraged co-sponsors and concerned members to intensify efforts to address remaining issues and find a solution.
Current trade tensions and the rules-based multilateral trading system
Brazil introduced an agenda item on rethinking the rules-based multilateral trading system. In light of the unprecedented challenges facing the system and the WTO, Brazil emphasized the urgent need for deep and comprehensive reform covering both substance and process. The WTO’s regulatory framework has not kept pace with evolving trade realities, including new technologies, actors and trade patterns, Brazil said.
To move forward, Brazil said there appear to be three pathways forward on reform: (1) incremental updates, which may be insufficient; (2) ambitious efforts to create entirely new rules and foundations; or an avenue it said was worth exploring (3) a middle-ground approach —preserving existing rules while an open-ended group of members engage in the negotiation of new and complementary rules on a voluntary basis and more flexible decision-making parameters, including less judicialized dispute settlement. Brazil urged members to use the lead-up to MC14 to develop a roadmap for meaningful reform and pledged its full engagement.
Eleven members took the floor to comment. Many acknowledged the challenges faced by the global trade environment and the need for a modernized, robust and adaptable multilateral trading system that upholds and builds on the WTO’s core principles. One member said that preservation cannot be the foundation of deep reform.
For the fourth time, China introduced an agenda item on heightened trade turbulence and responses from the WTO. China reiterated the need to collectively safeguard and strengthen the rules-based multilateral trading system. It once again called for sustained action under its proposed “Stability, Development and Reform” (SDR) approach, which emphasizes stability as the cornerstone, development as the priority, and reform as the pathway to enhancing the resilience of the multilateral trading system.
Eleven members took the floor under this item. Many that spoke supported China’s intervention while one member said China was not adhering to the principles it was supposedly seeking to safeguard.
The European Union briefed members on a 24 September session co-hosted by Mexico and the EU on the topic of financing industrial policies while minimizing negative spillovers. The session was the ninth in a series of sessions among a group of developed and developing members on the issue of industrial policy, which the EU said had become a major source of tensions in the international trading system.
Members expressed support for the subject matter and candid spirit of the sessions, and Japan and Brazil noted that they will co-host the next session in November. The Director-General said that she was pleased with how the sessions identified an emerging issue and urged members to continue dialogue on the matter.
Dialogue on Sustainable Agriculture in the Multilateral Trading System
Brazil presented a summary of the ongoing initiative to foster deeper understanding and discussions among WTO members on integrating sustainability into the multilateral trading system for agriculture. The summary was based on a meeting held on 22 September, with representatives from 41 delegations attending. Brazil emphasized the urgent need to address more forcefully in the WTO critical sustainability challenges, with a view to ensuring WTO disciplines better support a more sustainable and resilient food and agriculture system, while not creating unnecessary trade restrictions, distortions or discrimination, and not weakening the fight against hunger and poverty.
Members welcomed Brazil’s initiative and agreed that sustainability is a critical component of agricultural reform. Many expressed a willingness to engage in thematic discussions and participate in the proposed retreat. Some members questioned the need for a separate series of dialogues focused on sustainability, or suggested that, with limited time until MC14, efforts should be focused on achievable outcomes. Others stressed the need to address jointly the environmental, economic and social dimensions of sustainability, encompassing food security and the livelihood of small farmers.
Development-related issues
The Gambia, on behalf of the Group of Least Developed Countries (LDCs), once again introduced the group’s proposal seeking to extend existing LDC flexibilities for a limited period for members graduating from LDC status. The proposal is in recognition that the phasing-out of international support measures associated with LDC status can present challenges for graduating LDCs as they seek to integrate more fully into the global economy.
The Gambia said it was not seeking a General Council decision at this meeting but to underscore the importance of constructively completing the mandate set out in the MC13 Ministerial Decision on smooth transition support measures for graduating LDCs.
Several members took the floor to offer their views on the LDC group proposal.
The General Council received a report from the chair of the Committee on Trade and Development’s Dedicated Session on Small Economies. A Dedicated Session will be held on 14 October to review a Secretariat report on integration of small, vulnerable economies (SVEs) into global trade, highlighting trends in the trade of small economies in trade, challenges relating to trade costs and food security, and avenues for strengthening resilience.
Saudi Arabia offers to host MC15
Speaking in his capacity as the representative of the Kingdom of Saudi Arabia, Ambassador Almoqbel announced to members that Saudi Arabia will formally request to host the WTO’s 15th Ministerial Conference. Cameroon will host MC14 on 26-29 March 2025. Ministerial conferences normally take place every other year, with the General Council deciding on the venue based on offers received from members.
Share