TWN Info Service on WTO and Trade Issues (Oct25/07)
8 October 2025
Third World Network

Trade: Members remain divided on how to reform the WTO
Published in SUNS #10306 dated 8 October 2025

Geneva, 7 Oct (D. Ravi Kanth) — Members of the World Trade Organization on 6 October held fast to their entrenched positions on how to reform the global trade body, with the United States insisting that its stance on several key reform issues has not changed and that it continues to see members sidestepping the fundamental matters, without elaborating on them, said people familiar with the development.

The US also called for making the moratorium on levying customs duties on electronic transmissions permanent at the upcoming WTO’s 14th ministerial conference (MC14), to be held in Yaounde, Cameroon, in the last week of March next year.

However, trade ministers at the WTO’s 13th ministerial conference (MC13) in Abu Dhabi in March 2024 had decided to terminate the moratorium by the end of March 2026.

The ministerial decision (WT/MIN(24)/38) states: “We agree to maintain the current practice of not imposing customs duties on electronic transmissions until the 14th Session of the Ministerial Conference or 31 March 2026, whichever is earlier. The moratorium and the Work Programme will expire on that date.”

At the General Council (GC) meeting on 6 October, while many members highlighted the importance of WTO reform, divisions persisted on issues such as the continuation of the practice of decision-making by consensus, the restoration of the two-tier dispute settlement system, the criteria for availing of special and differential treatment by developing countries, and several other matters, according to people familiar with the discussions.

The GC chair, Ambassador Saqer Abdullah AlMoqbel of Saudi Arabia, welcomed two new trade envoys from China and Bangladesh, while paying tribute to the outgoing trade envoy of Malaysia, Ambassador Syahril Syazli Ghazali.

The WTO’s Director-General, Ms. Ngozi Okonjo-Iweala, as well as more than ten members praised the constructive contributions made by Ambassador Ghazali on various initiatives, said people familiar with the development.

The GC chair also announced that his country intends to host the WTO’s 15th ministerial conference (MC15), following MC14.

A range of issues figured prominently in the day-long GC meeting, including WTO reform, budgetary calls on countries that have not paid their annual dues, the continued blockage on the incorporation of the Investment Facilitation for Development Agreement (IFDA) into Annex 4 of the WTO Agreement, differing positions on the widely cited figure that 72% of global trade is conducted on Most-Favored-Nation (MFN) terms, and the lack of progress on the mandated issues, among others.

The DG, who appeared to engage with members in a tone of self-exhortation, reportedly asked somewhat provocatively whether members truly want the WTO or not.

She suggested that for some middle-income countries – such as Malaysia, Hong Kong-China, and Singapore – trade is a lifeline, whereas for others it may be less critical, said people familiar with the development.

Ms. Okonjo-Iweala said members should be prepared to discuss difficult issues and should not “dance around them”.

The DG appeared to urge members to look directly at the challenges and reflect on whether they need the WTO or not.

“And if they need the WTO,” she said, “there are some countries that maybe can live without it – because if you look at the ratio of trade to GDP, some members visibly do not depend so much on trade,” according to people familiar with the discussions.

In this context, the DG maintained that certain “middle-income powers” are highly dependent on trade and may therefore need the WTO more.

“In fact,” she said, “middle-income powers need the WTO more – so they should explain why and be more active,” said people familiar with the discussion.

The group of middle-income countries, sometimes referred to as the “Friends of the System”, is a coalition that often aligns its positions with the DG’s understanding on several issues, said a person who asked not to be quoted.

As regards the importance of the WTO, several countries expressed support for strengthening the global trade body, emphasizing its role as a guarantor of predictable and rules-based trade.

The DG also challenged Brazil and Uruguay on their assessment that 72% of trade is conducted on MFN terms, questioning whether the methodology used was consistent with the one previously employed by the WTO when it estimated MFN trade at around 80%, said people familiar with the discussions.

She also said that despite invitations from several countries and heads of state, she is selectively visiting places to meet leaders.

Ms. Okonjo-Iweala said she will attend the G20 trade ministers’ meeting in Port Elizabeth, South Africa, on 10 October.

Prior to that, an informal WTO trade ministers’ dinner – modeled on the annual Paris meeting – will be held on 9 October for a select group of countries.

The DG justified her travel plans by stating that it is necessary to brief leaders directly, while acknowledging that she must apologize in advance for being unable to accept all invitations.

She said she will also attend the upcoming APEC leaders’ meeting, as well as the EU trade ministers’ meeting, according to people familiar with the development.

The DG emphasized that her travel is “very critical” because she must brief leaders on reforms and other major issues, saying that without their involvement and participation, progress at the WTO cannot move forward.

WTO REFORM

Ambassador Petter Olberg of Norway, the facilitator overseeing the WTO reform discussions, presented a detailed report on the state of play and members’ positions on the contentious issues.

During the WTO reform discussion, Ambassador Syahril Syazli Ghazali of Malaysia, chair of the ASEAN group, said: “In the face of increasing geopolitical and economic uncertainties – including global trade tensions – and risks to supply chain resilience, the role of the WTO in fostering a predictable, transparent, and non-discriminatory environment is more critical than ever.”

He added that ASEAN ministers had recently “underscored the critical and urgent need to strengthen the multilateral trading system through pragmatic, forward-looking, and inclusive reforms.”

The ASEAN chair stated, “This reform agenda is not merely aspirational, but essential to enhance predictability and promote transparency, as well as bolster economic resilience for all members.”

He assured that the trade envoys of the ten-member ASEAN group in Geneva “will continue to engage constructively with other members to deliver meaningful and pragmatic reform and work closely with others to safeguard and strengthen the multilateral trading system.”

So far, there is no clarity on WTO reform, and members appear to be engaged in seemingly fruitless discussions – a concern that the DG and the GC chair plan to raise with trade ministers at the WTO’s informal ministerial dinner in Port Elizabeth, South Africa, on the evening of 9 October, said people familiar with the discussions.

IFDA

The General Council agenda item on a decision on incorporating the Investment Facilitation for Development Agreement (IFDA) into Annex 4 of the WTO Agreement remains blocked after India stated that its position on the issue remains unchanged.

India also questioned why the matter was being repeatedly brought to the GC despite its earlier opposition to including IFDA on the agenda, said people familiar with the discussions.

The leading proponents – Chile and South Korea – thanked Turkiye and South Africa for engaging in discussions with them.

Meanwhile, the DG urged all members to work together to find a solution, stressing that poor countries need investment.

“Poor countries don’t need aid – they need investment and all sorts of things,” she said, according to people familiar with the development. +