WTO makes scant progress on revising rules
BUENOS AIRES – Ministers from 164 countries concluded negotiations at a biennial World Trade Organization (WTO) meeting Wednesday without agreements on how to modernize global trade rules, underscoring concerns about the global commercial arbiter's ability to resolve trade disputes.
Countries from the US to India and South Africa clashed over how to regulate everything from electronic commerce to illegal fishing as trade ministers questioned the WTO's efficacy at a time when the Trump administration is questioning the way multilateral organizations approach conflict resolution.
"Clearly this organization is not working well," said Pascal Kerneis, managing director at the European Services Forum, which represents service-industry firms in international trade talks. "There are countries that came here and clearly said in their speeches that they don't want to move their positions at all."
But while expectations for a breakthrough at the summit were low, many participants had hoped to find ways to foster e-commerce and combat illegal fishing.
Progress was minimal and while the US and 70 WTO members agreed to "initiate exploratory work" on e-commerce issues, trade ministers waited until the last minute to renew a 1998 moratorium on imposing duties on electronic-commerce transactions. It was nerve-rattling for technology companies following the talks, executives said.
Alibaba Group Holding chairman Jack Ma this week urged WTO members to keep the moratorium, saying new regulations could stifle growth and hurt smaller companies and startups in the developing world.
The US and other countries said they were pleased to be among the WTO members that will begin work on e-commerce negotiations. Such talks are considered a precursor to a potentially broader WTO-wide agreement.
"Initiatives like this among like-minded countries offer a positive way forward for the WTO in the future," US Trade Representative Robert Lighthizer said in a statement.
The new e-commerce talks are important "because it's a sign of support for... negotiations under the WTO umbrella at a time when people are worried the US is not committed to the WTO," said William Reinsch, a veteran Washington tradepolicy maker and lawyer, now a fellow at the Stimson Center think tank. But, he added, "it does not have immediate practical significance unless you think they'll be starting talks early next year."
Many trade representatives were also critical of US efforts to stymie the WTO's disputeresolution system, which relies on a seven-seat appellate court to settle complaints. The US has blocked attempts to replace judges on the court, which will soon be down to just three justices, WTO officials say.
"It is one of the most important issues as of now to protect the WTO," Suresh Prabhu, India's trade representative, said earlier in the week. "The dispute-settlement mechanism is a very important part of the WTO, so we should definitely keep that in mind."
Some trade officials said in private meetings that the US had abandoned its role as a lead advocate of multilateral consensus, making it harder to reach big agreements. (Dow Jones)