WTO Chief Calls for Political Will as Global Trade Talks Face Deepening Deadlock

At a critical meeting of the World Trade Organization’s (WTO) Trade Negotiations Committee (TNC) on 15 July, Director-General Ngozi Okonjo-Iweala issued a stark warning: the global trading system is at a crossroads. With rising trade tensions and an uncertain economic outlook, the world is watching the WTO to respond to issues that affect billions of lives and livelihoods. However, slow progress across major negotiating tracks is testing the institution’s relevance and credibility.

Speaking in her dual role as Chair of the TNC, Okonjo-Iweala stressed the need for a “genuine shift in negotiating mindset and political will” if the WTO is to deliver meaningful outcomes in the lead-up to its 14th Ministerial Conference (MC14) in March 2026.

“In today's climate of record trade policy uncertainty, safeguarding the stability and predictability the WTO provides has never been more urgent,” she said. “We are far from where leaders and stakeholders expect us to be. We are not yet adhering to the call for results.”

Her remarks were echoed in reports from the chairs of key negotiation areas—including fisheries subsidies, agriculture, trade and development, services, and geographical indications—which collectively painted a picture of stalled or fractured negotiations across the board.

Fisheries Subsidies Talks Stuck Amid Leadership Transition

Ambassador Einar Gunnarsson of Iceland, in his final report as Chair of the fisheries subsidies negotiations, gave a sobering assessment. Despite a 2024 draft text and subsequent revisions, talks on disciplining subsidies that lead to overcapacity and overfishing remain deadlocked. “Gaps that had prevented members from concluding in 2024 remain and, in some aspects, have possibly widened,” he said.

With no consensus in sight, the focus has shifted to the implementation of the existing Agreement on Fisheries Subsidies, adopted in June 2022. Just six more ratifications are needed for it to enter into force. Gunnarsson urged that launching the new Committee on Fisheries Subsidies could help restore trust and eventually push negotiations forward.

Agriculture Talks Also Facing Persistent Divergences

In the agriculture negotiations, Ambassador Ali Sarfraz Hussain of Pakistan reported that deep-rooted disagreements remain unresolved following the group’s latest meeting on 25 June. Issues such as public stockholding for food security, market access, and export subsidies remain divisive, and members have shown little flexibility.

While proposals such as a “mini package” for MC14 or a transparency deal on export restrictions have been floated, none have gained broad acceptance. The Chair aims to clarify the path forward by September, considering a range of possible MC14 outcomes—from a political declaration reaffirming WTO rules to an agreement on a future work programme.

Trade and Development: Incremental Progress, But Clock Is Ticking

Reporting on trade and development, Ambassador Kadra Hassan of Djibouti struck a cautiously optimistic tone. Although negotiations are complex, she noted growing momentum around implementing special and differential treatment (SDT) provisions in the Agreements on Sanitary and Phytosanitary (SPS) Measures and Technical Barriers to Trade (TBT).

“We are approaching MC14 fast,” she said. “I urge all members to continue their efforts and maintain momentum.”

Services and Geographical Indications: Work Yet to Reignite

In a written update, Ambassador Adamu Mohammed Abdulhamid of Nigeria acknowledged a general consensus on the importance of services trade, which now accounts for more than 20% of global trade in value-added terms. However, ideas to explore market access in regional trade agreements and focus on developing country priorities have met resistance. More discussions are slated for October.

On the topic of geographical indications, Ambassador Alfredo Suescum of Panama noted no new proposals on establishing a multilateral register for wines and spirits. However, industry stakeholders remain engaged and open to renewed dialogue, which may resume after the WTO’s summer break.

A System in Search of Direction

The cumulative updates from negotiating chairs underscore a common theme: slow or stalled progress, despite mounting expectations. The WTO faces increasing pressure from governments, industry, and civil society to deliver tangible outcomes in a world that is rapidly changing due to geopolitical rivalries, technological shifts, climate change, and growing protectionism.

Director-General Okonjo-Iweala stressed that the WTO’s role as a guardian of multilateralism and predictability in trade is at risk unless members move beyond rhetoric to real results. She reiterated that reform, repositioning, and real delivery are essential—not just to maintain relevance, but to serve the very people whose lives depend on a fair and functioning global trade system.

The Road to MC14

With MC14 less than nine months away, time is running out for members to bridge gaps and build consensus. Whether through political declarations, partial agreements, or frameworks for future negotiations, the need for tangible progress is urgent.

The WTO’s ability to meet this moment will depend on whether its members are willing to match their calls for action with concrete, collective steps forward.