Stakes are high for the WTO at MC12
Last March, Ngozi Okonjo-Iweala became the 7th Director General of the WTO. Importantly, she is the first woman and first African to head the global body that polices and promotes international trade. Leading up to her appointment, she said all the right things about the WTO needing to reform, modernize and be more accountable and transparent to its members. With the WTO’s 12th Ministerial Conference set for the end of the month (November 30th to December 3rd) she can match her words with action. Here are three areas to watch closely which will help determine whether MC12 is a success or failure.
Restoring functionality of the Appellate Body
One of the core functions of the WTO is to adjudicate trade disputes between its members. These processes are frustratingly lengthy and become even more time consuming when appeals to panel decisions are made. The Appellate Body hears these cases and can uphold, modify or reverse the legal findings and conclusions of a panel. For over a year, this core function has been paralyzed because the U.S. refuses to fill the vacancies that have been created by the expiring terms of Appellate Body judges This means one of the core jobs of the WTO is going unfulfilled. Resolving this would be a huge win for Ngozi. Finding a solution as part of MC12 is a must if the WTO is to remain relevant in global trade.
Winding down pandemic restrictions
In some cases, the pandemic has proven the importance of free and open trade. Indeed, there’s a reason that for the most part, food, medicines, and other essentials have remained plentiful, with prices relatively stable (the steady march of inflation notwithstanding). Some countries have even proactively lowered and eliminated tariffs to ensure goods kept flowing. Yet others have talked about the need for self sufficiency which often means new trade restrictions aren’t far behind. The WTO has done a good job tracking these measures. But coming out of MC12 it needs to be made clear that unwinding pandemic related trade barriers is a must to get the global economy back into growth mode.
Ambitious outcomes on agriculture
Always the most sensitive area for trade, several months ago there were high hopes that an ambitious outcome on agriculture would be one of the crowning achievements at MC12. However, hopes are fading that ambition will be on the menu later this month as EU member stats, the U.S. and other developed countries aren’t eager to make major concessions in sensitive areas. This is no surprise as the WTO has long been incapable of resolving these perennially touchy issues. However, many believe that this will is yet another sign the WTO is not capable of doing much beyond its refereeing role, which is also under threat so long as the Appellate Body remains paralyzed.
In just over a week’s time, global trade watchers will be looking for real progress at MC12. Ngozi knows the WTO’s credibility will continue to be questioned without results. The pressure is on.