Negotiators came away from a World Trade Organization conference of government ministers without advancing a single major initiative, aside from renewing a longtime moratorium on digital media taxes.
Despite prolonging its 13th Ministerial Conference, hosted by the United Arab Emirates, for an extra day, WTO concluded its weeklong gathering in Abu Dhabi on Saturday after failing to reach any consensus on fishing subsidies, agricultural reforms, and other major trading issues.
It also could not reach consensus on whether a waiver of parts of the 1995 TRIPS Agreement that governs intellectual property should be extended beyond COVID-19 vaccines to include diagnostics and therapeutics.
The only significant action was to extend a pause on commercial duties imposed on “electronic transmissions” – e-commerce products such as video games, music and films that cross borders through the internet. Negotiators agreed to take up the issue at their next biennial meeting.
WTO gained two new members, Comoros and Timor-Leste, increasing its ranks to 166 nations. Ministers formally approved their memberships at the conference. Almost 4,000 ministers, senior trade officials and other delegates attended the conference, along with business people, citizens and journalists.
The conference adopted the Abu Dhabi Ministerial Declaration, committing to preserve and strengthen the ability of the multilateral trading system – though the lack of any major agreements undercuts the viability of the Geneva-based global organization as a once-vital gatekeeper for the global economy.
Some of the blame lies with the United States. Despite being a major force behind the establishment of the WTO, former U.S. President Trump's administration brought the WTO appellate body to a halt in 2019 by not allowing the ranks of judges on its bench to be refilled.
That has crippled the WTO's ability to resolve disputes among nations, which is arguably its most important function. Its appellate body has served as the world's top court for settling trade disputes.
Even in a year of elections affecting almost half the world's population, the U.S. presidential election on Nov. 5 poses a particular threat to the WTO and global trade if Trump is able to regain the White House.
He has threatened to withdraw the U.S. from the global trade organization, and plans to impose a 10% tariff on all U.S. imports and a 60% tariff on Chinese goods.
But even if President Joe Biden is reelected, the WTO could suffer. The Biden administration still has not reversed the damage done under his predecessor.
Defiant optimism
The WTO described the Ministerial Declaration as an acknowledgement that the WTO and the multilateral trading system can contribute to the United Nations' 17 Sustainable Development Goals for 2030, which are 85% off-track.
Two ministerial decisions will seek to "accelerate discussions" toward restoring the appellate body's effectiveness and to improve "special and differential treatment" provisions for developing and least developing countries, Okonjo-Iweala said.
For the first time, the WTO said, ministers talked about how the global trading system relates to sustainable development and socio-economic inclusion, particularly for empowering women and expanding opportunities for small firms.
A stalemate among nations blocked progress on trade problems sometimes caused when governments purchase, stockpile and distribute food to people in need. Stockpiling can distort trade when farmers sell at prices fixed by governments.
WTO Director-General Ngozi Okonjo-Iweala struck a defiantly optimistic tone despite the conference's failure to agree on any breakthrough deals.
“The WTO remains a source of stability and resilience in an economic and geopolitical landscape fraught with uncertainties and exogenous shocks," she said. "Trade remains a vital force for improving people’s lives, and for helping businesses and countries cope with the impact of these shocks. Let us get some rest, then regroup and resume."
