DG Okonjo-Iweala: “More than ever all eyes are on us”

In her report to the TNC, DG Okonjo-Iweala noted that despite rising trade measures, 74% of global goods trade still flows under most favoured nation tariff terms, "but in today's climate of record trade policy uncertainty, safeguarding the stability and predictability the WTO provides has never been more urgent."

"It's precisely because of today's challenges that calls for reform, deep reform, repositioning and real delivery are growing louder," she said. From recent interactions with leaders in various fora, "one message is clear - they understand the stakes, they understand the urgency, and they want results."

"Clearly, we are far from where leaders and stakeholders expect us to be," the Director-General added. "We are not yet adhering to the call for results."

The challenges facing the organization and its members were highlighted in the update reports from the negotiating chairs to the membership.

Reporting in his capacity as the Chair of the fisheries subsidies negotiations, Ambassador Einar Gunnarsson (Iceland) noted that in a readout to the negotiating group on 14 July on his recent consultations with members, he "unfortunately did not see any indication, nor pick up any signals, of a possible pathway" that could lead to successful conclusion of negotiations on additional provisions to discipline subsidies contributing to overcapacity and overfishing".

While most members continue to believe that a draft text circulated in July 2024 and revised the following November remains the basis for reaching an agreement, "gaps that had prevented members from concluding in 2024 remain and, in some aspects, have possibly widened," the Chair said.

"My honest assessment therefore remains that the (negotiating group) is not ready to reach consensus now, nor in the coming months," said Ambassador Gunnarsson, who is stepping down from his Chair role. 

The "vast majority of members" saw value instead in focusing on the entry into force and implementation of the Agreement on Fisheries Subsidies adopted in June 2022, which is now awaiting six additional instruments of acceptance for entry into force, and the setting up of the new Committee on Fisheries Subsidies.

"A successful start to the work of the Committee on Fisheries Subsidies could serve to build trust and confidence conducive to giving the negotiations on the additional provisions the necessary push forward," he said.

Reporting in his capacity as Chair of the agriculture negotiations, Ambassador Ali Sarfraz Hussain (Pakistan) said that his recent meetings and that of the negotiating group on 25 June showed "long-standing divergences on substantive issues continue to persist." 

"I have not been able to pick signals from the revealed preferences of the members that can lead me to be optimistic about the unlocking of outcomes on the main agricultural pillars" before the WTO's 14th Ministerial Conference (MC14) in March 2026, Ambassador Hussain said. 

Various ideas such as securing a mini package at MC14 focusing on food security and development support, or on transparency in the application of export restrictions, have met resistance, he noted. Several options for an MC14 outcome remain on the table, including a political declaration reaffirming the value of existing WTO disciplines, establishing a work programme for continued negotiations beyond MC14, and an agreement on comprehensive disciplines on all negotiating pillars, the Chair added.

"My objective remains to have by the end of September a better sense of what could constitute the best path forward, including the nature of any outcome we can aim for at MC14," Ambassador Hussain said.

Reporting in her capacity as Chair of the negotiations on trade and development, Ambassador Kadra Hassan (Djibouti) said that while the work "remains challenging, as much as we are making incremental progress at this juncture, it is important that we focus on identifying elements for possible outcomes."  She said she was encouraged by discussions on the implementation of special and differential treatment provisions in the Agreements on Sanitary and Phytosanitary Measures and Technical Barriers to Trade.

"We are approaching MC14 fast," Ambassador Hassan said. "I urge all members to continue their efforts and maintain momentum as we approach MC14."

Ambassador Alfredo Suescum (Panama), Chair of the negotiations on the multilateral register for wines and spirits, said in a video statement that no new proposals have been submitted but that industry stakeholder groups he has been in touch with were eager for further dialogue.  The Chair said he would further assess the appetite for renewed substantive work after the WTO's summer break.

In a written report to members, Ambassador Adamu Mohammed Abdulhamid (Nigeria), Chair of the services negotiations, said there was broad recognition of the growing importance of services in world trade and the need to respond to the call of ministers at MC13 in 2024 to reinvigorate work at a meeting of the negotiating group on 12 June.

The main suggestions for future work included examining the levels of market access achieved in regional trade agreements, looking at applied levels of market access and discussing sectors and modes of supply of interest to developing countries. However, Ambassador Abdulhamid said several delegations shared reservations about the different suggestions made. Discussions will continue at the next negotiating group meeting in October, he added.