WTO overhaul targets fairer trade, easier decision-making to end paralysis
Trump's sweeping tariffs have forced countries to line up to negotiate bilateral trade deals with Washington, bypassing the multilateral framework.
WTO members had already struggled to reach deals due to a consensus requirement among all 166 members. Preventing members from blocking decisions is now the top priority in reform talks, diplomats told Reuters.
'The sense of urgency is palpable, and there is widespread recognition that there is no viable alternative to reform,' Norway's WTO Ambassador Peter Olberg, who was appointed to facilitate the organisation's reform talks, said in an internal communication to members seen by Reuters.
The WTO's foundational Most Favoured Nation (MFN) rule requires equal treatment among members but developing countries have privileges to help them compete. These include China and India, which Trump argues are now major economies with no need for extra support.
One document showed WTO members are aiming to streamline decision-making processes, promote fairer industrial policies including subsidies, and review the privileges of developing countries.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
The proposals feed into reform consultations running through the latter part of this year that are intended to inform the next WTO ministerial conference in Cameroon in March. The latest round of consultations is taking place this week.
Among the proposals is the so-called Pareto improvement, which a senior Chinese WTO delegate in Geneva said China had put forward. This measure would require members to provide clear, evidence-based proof of harm when blocking proposals.
Other proposals include permitting members to opt out of decisions and allowing subsets of countries to advance negotiations without full consensus.
'The post-war multilateral system as we know it is dead,' Roberto Azevedo, WTO Director-General from 2013 to 2020, told Reuters, calling reform discussions a 'do or die' situation for the WTO in particular.
WTO Director-General Ngozi Okonjo-Iweala conveyed the US position to members in a restricted document viewed by Reuters, that a 'reform by doing' approach – of practical, incremental improvements in the organisation's functioning – is 'vacuous' and would fail to tackle the deeper structural issues.
The US said in its 2025 trade policy agenda that its patience is 'wearing thin' and that key issues will not be resolved until China and other major economies – implying countries like India – relinquish their privileges.
China said in June that it had heard 'every word' of the US concerns, expressing openness to discuss such privileges, as well as tariffs and industrial policy.
India's WTO mission did not respond to a request for comment.
Current reform talks do not address the dispute settlement system, which will be considered at a later date, according to one of the WTO documents.
The WTO declined to comment on this article. Olberg did not immediately reply to a request for comment. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
11 minutes ago
- Straits Times
Brazil VP hails 'good' and 'fruitful' conversation with Lutnick on tariffs
Find out what's new on ST website and app. Brazil's Vice President Geraldo Alckmin speaks during a ceremony at the Planalto Palace, in Brasilia, Brazil, July 14, 2025. REUTERS/Adriano Machado/File Photo BRASILIA - Brazilian Vice President Geraldo Alckmin said on Thursday that he had reiterated his country's willingness to negotiate proposed U.S. tariffs on imports from Latin America's No. 1 economy during a conversation on Saturday with U.S. Commerce Secretary Howard Lutnick. Alckmin said he and Lutnick had a "good" conversation last week that lasted about an hour. The U.S. has announced 50% tariffs on Brazilian imports starting August 1, a measure U.S. President Donald Trump has tied to judicial measures against former president and ideological ally Jair Bolsonaro, who has been accused of plotting a coup. Brazilian officials have been holding discussions with local companies to evaluate the potential impacts of the tariffs, while also preparing measures to mitigate those effects and studying potential countermeasures. But Brazilian authorities have said they have been struggling to contact high officials of the U.S. government for direct negotiation. "The conversation (with Lutnick) was fruitful," Alckmin said, noting the specifics of the discussions should be kept confidential. "We didn't create this problem, but we want to resolve it," the Brazilian VP added. Top stories Swipe. Select. Stay informed. Business GIC posts 3.8% annualised return over 20 years despite economic uncertainties Business GIC's focus on long-term value aims to avoid permanent loss amid intensifying economic changes Opinion No idle punt: Why Singapore called out cyber saboteur UNC3886 by name Asia Deadly Thai-Cambodian dispute puts Asean's relevance on the line Singapore Singapore urges all parties in Thailand-Cambodia border dispute to exercise restraint World Trump, Fed chief Powell bicker during tense central bank visit Singapore Khatib Camp to make way for housing, with its functions moving to Amoy Quee Camp Life Hulk Hogan, who helped turn pro wrestling into a billion-dollar spectacle, dies at 71 The White House did not immediately reply to a request for comment. REUTERS
Business Times
11 minutes ago
- Business Times
Markets bet Beijing is getting serious about China's overcapacity
[BEIJING] Commodity prices from steel to polysilicon have surged this month as Chinese investors bet Beijing is finally serious about addressing overcapacity across the world's second-largest economy. Prices for nine industrial commodities including coal, steel, polysilicon, a building block for solar panels, alumina and lithium carbonate have climbed by 10 per cent to 68 per cent this month while share prices in steelmakers, solar panel manufacturers and clean energy companies have outpaced the benchmark CSI 300 Index. The moves coincide with Beijing's call on July 1 to tackle 'disorderly price competition,' or overcapacity, and an acknowledgement it intends to deal with a persistent problem fuelling deflation at home and trade barriers abroad. Since then, state media has amplified that message with warnings against involution, a now-popular reference to competition so fierce it becomes self-destructive. 'I think that addressed a big concern for investors, which is the profit margin squeeze on some of the very promising sectors,' said Tai Hui, Asia Pacific chief market strategist at JPMorgan Asset Management. Champions of the old economy including steel and coal and newer industries such as solar panels and electric vehicles are grappling with overcapacity and falling prices, which had previously prompted many warnings but little action. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up This month, some of the reactions from ministries, regulators and local governments suggest Beijing's signal is being received. Two days after a top-level policy meeting on July 1 called for action, the industry ministry pledged to curb price wars in the solar sector. China's photovoltaic industry index is up about 11 per cent this month. Polysilicon prices are up 68 per cent after local media reported that the two biggest producers were preparing to buy up smaller rivals and consolidate the sector. Last week, a lithium miner in northwest China was temporarily shut for non-compliant mining, leading speculators to bet that more closures could follow. This week, prices for coking coal used to make steel rose to their daily limit for three consecutive sessions after the National Energy Administration ordered inspections at mines to check for excess production. To be sure, Beijing has pushed supply-side reforms before, most recently about a decade ago to cut production in the cement, steel, glass and coal industries. However, the task is more difficult this time due to higher levels of private ownership in many of these industries, misaligned incentives at the local and national levels, and limited options for other sectors to absorb lost jobs. It's unclear how far authorities are determined to go in curbing production and which other sectors they may target. China's leadership is sending a clear and positive signal about their commitment to address overcapacity, but progress is likely to be much slower this time around and it could take a year or two to see improvement in company profits, said Laura Wang, chief China equity strategist for Morgan Stanley based in Hong Kong. 'In the next three to six months, we are relatively conservative in terms of how much actual capacity shutdown you would be able to see,' Wang said. REUTERS
Business Times
11 minutes ago
- Business Times
UK consumers save more as they brace for tougher times, GfK says
[LONDON] British consumers remained in a cautious mood this month ahead of possible tax increases later this year and added to their savings, according to a survey published on Friday. The consumer confidence index from market research firm GfK dipped to -19 in July from a six-month high of -18 in June. Economists polled by Reuters had mostly expected a reading of -20. 'The data suggests that some people may be sensing stormy conditions ahead,' Neil Bellamy, consumer insights director at GfK, said. 'With speculation growing over possible tax rises in the Autumn budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying.' Finance minister Rachel Reeves is expected to raise taxes for a second year in a row in her next annual budget plan after Prime Minister Keir Starmer was forced into u-turns on plans to save billions of pounds on welfare spending. GfK's savings index, which is not part of its headline confidence gauge, jumped seven points to +34, its highest level since November 2007, shortly before the global financial crisis deepened. Official retail sales data for June, due at 0600 GMT, are expected to show a rise in sales volumes after a sharp fall in May, according to the economists polled by Reuters. REUTERS
