TWN Info Service on WTO and Trade Issues (Oct26/26)
27 October 2026
Third World Network

WTO: Reform talks witness deep divisions over S&DT & policy space
Published in SUNS #10541 dated 26 October 2026

Geneva, 23 Oct (D. Ravi Kanth) -- The facilitator overseeing the discussions on the development track of World Trade Organization reform, Ambassador Nthisana Motsete-Phillips of Botswana, said on 22 October that she had consulted all 166 WTO members in smaller groups to identify possible avenues for progress without prejudicing existing positions.

Ambassador Motsete-Phillips, who had worked at the WTO Secretariat and the International Monetary Fund in different administrative capacities, had faced criticism from many members, particularly the African, Caribbean and Pacific (ACP) Group, over the conduct of the smaller-group consultations.

People familiar with the development said that some delegations objected to what they regarded as “siloed” discussions.

The facilitator said the consultations had given members “a relatively better understanding of one another’s perspectives from the last plenary sessions, with positions remaining entrenched.”

She added that she had sought to establish whether members were willing to explore ideas and approaches that accommodated their respective interests and concerns.

Her change in approach followed criticism that the questions framing the discussions were steering them towards positions more palatable to the major trading powers, said a trade envoy who asked not to be quoted.

In her report, issued under her own responsibility, she said: “In this context, I position the same question at every session: Without prejudice to any Member’s position, what, if anything, might we all be willing to explore together to help move the work forward, and how ought we to proceed?”

The consultations revealed support for identifying problems before proposing solutions, organising discussions around manageable themes and using evidence to understand how existing rules affect members’ development objectives.

Members broadly supported a member-driven stocktake of WTO provisions and a mapping exercise drawing on the work of the Committee on Trade and Development and other WTO bodies.

Several cautioned that these exercises should neither assess members’ legal rights nor create eligibility criteria.

The facilitator stressed that expressed interest in exploring an idea “should not be interpreted as acceptance of it.”

S&DT

The development track of WTO reform remains divided between the United States, the European Union, Japan and other industrialised countries, who want to curtail special and differential treatment (S&DT) by moving away from the self-designation framework for availing of S&DT by developing countries, and a large majority of members seeking to preserve the existing S&DT framework, said people familiar with the discussions.

Many members suggested examining how existing S&DT provisions operate, what prevents their effective use and how they could be made more operational.

Several advocated focusing on effectiveness rather than eligibility. Proposals included needs-based approaches, broader objective indicators, approaches modelled on the Trade Facilitation Agreement and voluntary opt-out arrangements.

However, the possibility of differentiating among developing countries using objective criteria, including GDP per capita, as proposed by the US, remained controversial.

Some members opposed income-based criteria, while others would consider new approaches only if they did not lead to automatic exclusion, graduation or pressure to surrender existing flexibilities.

Preferences for least-developed countries were identified by some members as a possible area of common ground.

Process-related concerns

The facilitator acknowledged “the process-related suggestions for improvement raised by some Members, which I have taken note of and brought to the attention of the GC chair and fellow Facilitators for our collective reflection and possible action.”

The ACP Group and many developing and least-developed countries raised sharp concerns over the consultation process, according to people familiar with the discussions.

Policy space

Members proposed examining the policy space available for industrialisation, economic diversification and structural transformation.

Mapping relevant WTO provisions could help identify gaps and clarify which existing flexibilities might be used more effectively.

Some members stressed that policy space must be clearly defined and must respect other members’ rights and agreed WTO obligations.

Questions were also raised about whether existing rules were practically implementable.

Crisis response and resilience formed another potential area for exploration.

Members considered whether WTO rules could be temporarily suspended to help countries cope with major natural disasters, although some questioned whether exceptions were the appropriate response.

Technical assistance and capacity building, members suggested, should become more demand-driven, needs- based and coordinated, without substituting for legal flexibility.

Emerging issues included digital trade, artificial intelligence and the green transition, particularly their implications for existing development asymmetries.

Members also highlighted services-led development, food security, intellectual property and public health, global supply chains and cooperation with other international organisations.

Outstanding development mandates, especially in agriculture, remained a priority. Members also called for a common understanding of the WTO’s role in national development.

Way ahead

In outlining “substance and the way ahead,” the facilitator identified the following themes for further exploration:

1. Special and differential treatment (S&DT): Members suggested examining how existing provisions operate in practice, what impedes their use and how they might be made more effective and operational. Several urged a focus on effectiveness rather than eligibility. The possible use of objective criteria to differentiate among developing members remained contentious, with some opposing income-based criteria such as GDP per capita. Other ideas included needs-based or Trade Facilitation Agreement-type approaches, broader objective indicators and a voluntary opt-out register. Some members would consider these approaches only if they did not lead to automatic exclusion, graduation or other forms of pressure. Others questioned the approaches themselves. Preferences for LDCs were identified as a possible area of common ground.

2. Policy space for industrialisation, economic diversification and structural transformation: A factual mapping of relevant WTO provisions was proposed as a first step towards identifying gaps and possible solutions. Members stressed the need to define policy space clearly, uphold other members’ rights and respect agreed rules, including their implementation. Questions were also raised about whether the rules were practically implementable and which flexibilities could be used more effectively.

3. Crisis response and resilience: Members expressed interest in exploring responses to shocks, including whether WTO rules could be temporarily suspended to provide relief to countries affected by major natural disasters. Some questioned whether exceptions would be the appropriate response.

4. Technical assistance and capacity-building: Members proposed making assistance more demand-driven, needs-based and coordinated, while ensuring that it complemented rather than substituted for legal flexibility.

5. The development dimension of emerging issues: Suggestions included examining the implications of digital trade, artificial intelligence and the green transition for existing development asymmetries, alongside emerging issues in agricultural trade, without displacing outstanding priorities.

6. Outstanding development mandates, including in agriculture: Members stressed the importance of addressing pending development commitments and developing a common understanding of the WTO’s role in countries’ development.