Facilitator cites “strong engagement” in initial WTO reform consultations

Ambassador Ølberg, who was appointed by General Council Chair Ambassador Saqer Abdullah Almoqbel (Kingdom of Saudi Arabia) in early June to serve as facilitator for the reform discussions, noted that he has conducted two rounds of consultation involving nearly 100 members, with the discussion structured around three indicative tracks:

• governance (institutional issues)
• fairness (level playing field and balanced trade)
• "issues of our time"

"What is already clear is this: across all three tracks, there is strong engagement, serious thinking, and a shared sense that reform is both necessary and urgent — even if views differ on the details," the facilitator said.

The "next phase of our work is about focus, discipline, and delivery," he added. "From the consultations so far, one thing is clear — we have a wide range of perspectives … Our goal is not to solve every issue now. It’s to identify where ministers can add the guidance needed to move forward decisively after MC14."

At their 12th Ministerial Conference in 2022, WTO members agreed to undertake a comprehensive review of the WTO's functions in order to ensure the organization is capable of responding more effectively to both the challenges facing the multilateral trading system and the opportunities provided by contemporary developments in global trade.

Speaking after more than 60 members took the floor to react to the facilitator's report, Director-General Ngozi Okonjo-Iweala said she was "encouraged with what I'm hearing."

"I agree with those who say that it's somewhat existential for the organization to seize the opportunity to do this reform," she said.  "It's not unusual that views are initially divergent … that being said, there seems to be an unmistakable momentum."

A number of members noted the importance of dispute settlement reform, which is being addressed on a separate track. Addressing the General Council, Ambassador Almoqbel referred to his communication to members in early June stating that he and the Dispute Settlement Body (DSB) Chair, Ambassador Clare Kelly (New Zealand), would be closely monitoring the situation on dispute settlement reform and would revert to members at the appropriate time.

Since that communication, the DSB Chair has been holding "low-key" conversations with members to "check the temperature," Ambassador Almoqbel said, and these conversations are ongoing.

Report of the Director-General

Reporting to the General Council in her capacity as Chair of the Trade Negotiations Committee, Director-General Ngozi Okonjo-Iweala welcomed the submission of Argentina's instrument of acceptance for the Agreement on Fisheries Subsidies. She noted that only five more acceptances are needed for the Agreement to enter into force, with several already in the pipeline.  She also noted the possibility of convening a special General Council meeting after the summer break to formally receive the additional instruments and mark the Agreement's entry into force. 

Regarding the negotiations on additional provisions to the Agreement, DG Okonjo-Iweala said she was encouraged by the strong support expressed by many members to move forward and conclude the negotiations. However, there was value in using the summer break to reflect on how best to advance the discussions, she said.

The Director-General also invited members to use the summer break to reflect on how to collectively ensure movement on "the negotiating files", including joint initiatives such as the Investment Facilitation for Development (IFD) Agreement.

"We cannot have a jam on multilateral negotiations moving forward and a jam on plurilaterals," DG Okonjo-Iweala said. Otherwise, members risk ending the year with nothing credible to take to the 14th Ministerial Conference (MC14) for consideration, she added. The world is "looking to the WTO, not as a source of stagnation or lack of action, but as a source of stability, predictability, a source of revitalization."

Twenty-four members took the floor after the Director-General's intervention, some speaking on behalf of groups of members, highlighting their issues of interest. 

Investment facilitation for development

On the IFD initiative, members were once again unable to reach consensus on the request supported by 127 members to incorporate the IFD Agreement under Annex 4 of the Marrakesh Agreement establishing the WTO. This marked the ninth time the proposal has been submitted to members for adoption.

Speaking on behalf of the 127 co-sponsors, the Republic of Korea underlined the urgent need to incorporate the Agreement into the WTO framework in order to help members attract investment, in particular for developing and least developed country members. The outlook for global foreign direct investment (FDI) in 2025 remains negative due to escalating trade tensions, geopolitical fragmentation and economic volatility, the Republic of Korea said. The IFD member parties believe that incorporating the Agreement into the WTO will reinforce the credibility and relevance of the organization.

Three members reiterated their objections to incorporating the IFD Agreement into the WTO multilateral framework. They reiterated their openness to further discussions on the matter.

Current trade tensions

China once again introduced a proposal on supporting the multilateral trading system in the current situation. The proposal further elaborates on its “Stability, Development and Reform” (SDR) approach for the WTO, which calls for stability as the cornerstone, development as the priority, and reform as the pathway to support the multilateral trading system as it faces heightened trade turbulence. China said it stands ready to work with all members pragmatically and constructively to collectively safeguard and strengthen the rules-based multilateral trading system.

Five members took the floor to respond to China's intervention.

Brazil introduced an agenda item on respecting the rules-based multilateral trading system. Brazil said the world was witnessing an unprecedented attack on the system and on the credibility of the WTO, with arbitrary tariffs disrupting global value chains and posing risks to the world economy. 

Even more concerning is a dangerous shift towards the use of tariffs as a tool to interfere in the domestic affairs of third countries, Brazil said. It is essential that the WTO recover its role as a place where all countries can settle disputes and affirm legitimate interests through dialogue and negotiation, Brazil added.

Fifteen members took the floor to react to Brazil's statement. DG Okonjo-Iweala said the interventions underlined the importance of WTO reform and responding to the concerns expressed by members.

Work Programme on Electronic Commerce – Report by the facilitator

Ambassador Richard Brown (Jamaica), the facilitator for the WTO's Work Programme on E-Commerce, reported on his recent consultations with members. He said that, overall, members overwhelmingly consider the work programme as an important aspect of the WTO engagement on e-commerce. They would like to see it preserved and made more effective, he added. 

Ambassador Brown also noted that the "vast majority" of members support the extension of the WTO's customs duties moratorium on electronic transmissions, with some preferring either longer periods for the moratorium or a permanent decision. At the same time, a few delegations continue to raise concerns related to revenue losses and policy space limitations, he added.

Ministers at the 13th Ministerial Conference in 2024 agreed to maintain the moratorium until MC14 or 31 March 2026, whichever is earlier. Both the moratorium and the Work Programme are set to expire on that date. MC14 is scheduled for 26-29 March 2026.

Transition support measures in favour of countries graduated from the LDC category

Gambia, on behalf of the Group of Least Developed Countries (LDCs), introduced the group's latest proposal regarding additional transition measures in favour of countries graduated from the LDC category. The measures are 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.

Next meeting

The next regular meeting of the General Council is tentatively scheduled for 6-7 October.

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