Home World The WTO discusses the future of global trade in Yaoundé against the...

The WTO discusses the future of global trade in Yaoundé against the backdrop of tensions in the Middle East

8
0

The 166 members of the WTO appear deeply divided ahead of their ministerial conference opening on Thursday in Yaoundé, Cameroon, amid strong global economic turbulence linked to the Middle East war.

Over four days, WTO members are gathering to try to revive an institution weakened by geopolitical tensions, negotiation blockages, and rising protectionism, as the war in the Middle East poses a serious threat to global trade. The ministerial is expected to be “tense because tension is high in the global trade system,” a Western diplomatic source told AFP. WTO Director-General Ngozi Okonjo-Iweala called on Yaoundé to open “a new chapter in the history of the multilateral trading system.” She also criticized the “unilateralism” she believes has emerged due to the collective failure of WTO members over the years to address the concerns and “frustrations” of countries. As the highest decision-making body of the WTO, the ministerial conference is typically held every two years.

For this fourteenth edition, many countries hope the meeting will mark a turning point for the organization. In 2024 in Abu Dhabi, the ministers failed to agree on fisheries and agriculture. Two years later, they face a major challenge: to develop an action plan to reform the WTO, at a time when the Trump administration’s unilateralism is prominent. European Commissioner for Trade Maros Sefcovic called on Monday for a “deep reform of the WTO … to better manage competition conditions, overcapacity, and market policies.” London also believes that “the WTO is at a decisive moment.” Several members wish to change the organization’s decision-making procedures, which currently operate based on consensus, review rules concerning developing countries and competition conditions, and restore the dispute settlement mechanism.

The return of Trump This tense ministerial is the first since the start of Donald Trump’s second term, characterized by disdain for multilateralism and WTO rules through tariffs and bilateral trade deals. “The WTO must evolve if it wants to remain relevant as the international trade system shifts towards reciprocity and balance,” warned U.S. Trade Representative Jamieson Greer on Monday. Preparatory discussions in Geneva revealed that a few countries, including India and the U.S., were not satisfied with the proposed roadmap. One of the main U.S. demands is the revision of the fundamental WTO principle of “most favored nation” (MFN) treatment, ensuring equal treatment for all trading partners. The EU is open to conducting a “reflection.”

The reform of the WTO has become more urgent due to the prolonged paralysis of the Appellate Body of the dispute settlement mechanism since 2019 – linked to the U.S. blocking judges’ appointments – and Donald Trump’s aggressive trade policy, in an international context where the line between trade and security issues is increasingly blurred. Beyond reform, ministers in Yaoundé must agree on the extension of the moratorium on tariffs on electronic transmissions. Its supporters will need to convince India. apo/ag/vk

[Context: The article discusses the division among WTO members ahead of a ministerial conference in response to global economic challenges and the war in the Middle East.]

[Fact Check: The WTO is facing challenges due to geopolitical tensions, protectionism, and the impact of the Trump administration’s trade policies.]