WTO Ministerial Conference offers necessary platform for collaboration

Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Central University of Finance and Economics in Beijing. The article reflects the author's opinions and not necessarily the views of CGTN.

The 13th Ministerial Conference of the World Trade Organization (WTO) is taking place from February 26 to 29 in Abu Dhabi, United Arab Emirates. The 13th Ministerial Conference of WTO represents an important opportunity to revitalize the multilateral trading system and a critical test of the WTO's authority and effectiveness, attracting high attention from the international community.

In recent years, the multilateral trading system has faced threats and challenges. The prevalence of trade protectionism is one of the most evident challenges. Some countries have adopted unilateralism policies, implementing measures such as raising tariffs and trade restrictions in an attempt to protect domestic industries and job opportunities. These actions not only violate trade rules but also disrupt the interconnectedness of the global economy.

These protectionist practices have posed significant shocks to the multilateral trading system. The World Trade Organization (WTO), as an important institution that upholds trade liberalization and promotes stable global economic growth, is facing severe tests. The prevalence of trade protectionism undermines the environment of fair competition and weakens the effectiveness of multilateral trade rules. Moreover, obstacles and disruptions to the WTO's dispute settlement mechanism and appellate body have rendered it incapable of playing its intended role, making trade disputes difficult to resolve and further undermining trust and efficacy within the multilateral trading system.

The significance of the 13th WTO Ministerial Conference lies in several aspects. It provides a crucial opportunity to collectively discuss and negotiate solutions to the current challenges facing global trade, revitalizing the multilateral trading system. The conference will serve as a platform for member countries to deeply engage in dialogue, addressing topics such as trade protectionism, dispute settlement mechanisms, and the formulation of trade rules, with the aim of resolving differences and establishing consensus.

Member countries can collectively address the root causes and reasons behind trade protectionism, working towards establishing a fair, open, and transparent trade environment. Additionally, the conference holds the potential for achieving concrete outcomes in key areas such as e-commerce, investment facilitation, and subsidy reduction, thereby supporting sustainable global economic growth.

This conference is essential in validating the authority and effectiveness of the WTO. Given the current global circumstances, there is a high expectation from the international community for the WTO to continue playing its role in safeguarding global economic stability and prosperity. By advancing the conference agenda, promoting trade cooperation, and facilitating dialogue, the WTO can demonstrate its significance and strengthen its authority in international trade rule-making and dispute resolution.

This year's conference can also serve as a platform for member countries to discuss and find solutions to the supply chain interruptions that have been exacerbated by geopolitical tensions and other issues. By addressing the challenges faced by global supply chains, the conference can help promote stability and resilience in cross-border trade, ensuring a smoother flow of goods and services.

Just before the conference, ministers representing a Joint Ministerial Declaration marking the finalization of the Investment Facilitation for Development (IFD) Agreement, released by 123 members of WTO. This declaration is a milestone breakthrough in WTO multilateral negotiation.

The agreement aims to simplify and strengthen the international investment environment, providing better investment facilitation and protection for businesses. By reducing investment barriers, streamlining investment procedures, and providing more stable, transparent, and predictable investment rules, the agreement creates a more stable and favorable environment for cross-border investment. The agreement emphasizes the principles of fair competition and open markets, preventing unreasonable investment barriers and discriminatory policies.

The agreement addresses the challenges and specific needs that developing countries face in investment. It creates a more favorable environment for developing countries by providing technical assistance and flexible mechanisms such as grace periods, assisting them in better integrating into the global trading system.

Investment is a crucial driver of economic development and job creation. By promoting investment facilitation, the agreement helps stimulate economic growth, create more employment opportunities, and improve living standards. The agreement establishes mechanisms to protect investor rights, including providing a fair and effective investment dispute resolution system. This will enhance investor confidence, reduce investment risks, and promote the development of cross-border transactions.

In a time of increasing geopolitical tensions and trade conflicts, the ministerial conference can reiterate the importance of multilateralism and the rules-based global trading system. It can underscore the benefit of resolving trade disputes within the framework of the WTO and finding mutual agreement through negotiations. By promoting dialogue and cooperation, the conference can help foster an environment that supports fair and predictable trade, providing stability and confidence for businesses and investors.

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