Abu Dhabi conference: What's the way out for WTO reform?

Editor's note: Lal Mia, a special commentator on current affairs for CGTN, is a freelance columnist, and researcher from Bangladesh. The article reflects the author's opinions and not necessarily those of CGTN.

From February 26 to 29, the World Trade Organization's (WTO) 13th session of the Ministerial Conference, its highest decision-making body, is being held in Abu Dhabi, United Arab Emirates. The well-timed event aims to find consensus on crucial international trade problems among 164 members.

The conference strives to find consensus on major international trade problems since the WTO and its multilateral agreements are the foundation of the rules-based international trading system. This year's summit addresses WTO reform, dispute resolution, e-commerce, international trade, agriculture, and fisheries subsidies.

The global trade body's Abu Dhabi conference should promote a rules-based, non-discriminatory, fair, open, inclusive, and transparent international trading system while developing countries struggle to secure trade advantages in this fragmented world. The Marrakesh Agreement, Doha round, and Uruguay round of trade negotiations are still vital today amidst the global challenges of international trade restrictions and de-globalization.

WTO action is still required to address the different issues brought about by the West. Despite the global call to promote globalization and a fair international trading system, the West, particularly the U.S., renounced basic principles, threatening the global forum and multilateralism as a trade discipline. The secretariat's morale was dampened by the U.S.'s unfair trade war with China during the last few years, which violated WTO regulations by imposing import charges. The U.S. blocks WTO Appellate Body reinstatement, as anti-globalization, trade protectionism, ultra-economic nationalism, and national security hype grows in the country.

All of these affect WTO development. These concerns represent a new reality but also split the global order into geopolitical blocs. The WTO Appellate Court was decimated, and the U.S. threatened to leave the organization. Although WTO has recovered from some U.S. damages, it is continuously facing threats to globalization, such as U.S. trade protectionism and possible return of the Donald Trump era. That is why the WTO is having hard times now.

These accords raise doubts about the WTO's purpose in a geopolitical bloc-dominated world. Political tensions across blocs enhance the possibility of trade wars that impair trade flows, stability, and economic shock resistance. According to a recent WTO assessment, splitting the global economy into two blocs would lower real earnings by 5.4 percent on average worldwide. Can the WTO continue to function normally amid global trade challenges caused by wars, conflicts, climate change, geopolitics, and trade protectionism?

The WTO is still the strongest defense against trade disruptions and economic fragmentation. WTO members have made tremendous progress in meeting their goals during the last 30 years. The WTO must adjust to its new reality since it still represents 98 percent of global trade. To be relevant in the international rules-based system, the WTO must continue its reform program. The Dubai ministerial conference should not fail to establish unanimity on most of these agenda items. So, it's not only about assessing unsolved problems but also about identifying developing concerns for discussions and creating realistic plans. It's also crucial to liberalize trade and waive trade barriers.

WTO negotiations and transparency provide a foundation for collaboration and problem-solving. Members may examine trade policy and voice concerns via its Trade Policy Review Mechanism. The secretariat's technical knowledge facilitates commerce and developing country involvement. Digital commerce requires global standards for interoperability; hence a multilateral WTO approach is necessary. Notable is the WTO members' multilateral collaboration, particularly in the area of e-commerce.

Multilateral cooperation, liberal trade policy, and openness are also crucial to agricultural trade and environmentally friendly products. In this case, Chinese electric vehicles shouldn't face any Western protectionist moves.

As the world's second-largest economy and biggest trading nation in the world, China's 2001 WTO membership has been benefiting the world economy. In its Foreign Trade Law, China is committed to a market economy and trade liberalization, which created global value chains. China has enhanced its market economy institutions and legal systems, expanded institutional opening, participated in WTO reform, and assisted developing countries in integrating into the multilateral trading system. China's WTO membership has increased investment opportunities, supply chain reorganization, and technical innovation.

Chinese Commerce Minister Wang Wentao is attending the WTO Ministerial Conference. China supports key initiatives at the meeting, including the restoration of dispute settlement mechanisms, agricultural negotiations, food security concerns, fisheries subsidies, investment facilitation, e-commerce, and multilateral trade rules. China also urges WTO members to contribute to stability and predictability against fragmented economic order and supports a comprehensive package of outcomes of the conference.

Recalling its prior commitment to accessibility, China highlights the need for an operational dispute resolution mechanism and a long-term multilateral solution to the Appellate Body obstruction. Three main points are highlighted in China's Position Paper on WTO Reform: respecting WTO principles, protecting developing nations' interests, and sticking to consensus-based decision-making processes.

China's WTO reform plan seeks to address important challenges, boost WTO significance in global economic governance, improve operational efficiency, and broaden the multilateral trade system. Ineffective WTO functions including negotiation and dispute resolution are in need to be addressed. It should prioritize sustainable development, living standards, and the economic demands of diverse nations. It may remain relevant in the global trade system by capitalizing on its strengths and achieving its goals.

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