WTO Members Push Forward on Reform as DG Okonjo-Iweala Urges Modernization

Proceedings opened with a moment of silence for Carlos Pérez del Castillo, former Ambassador of Uruguay to the WTO, who passed away in August.


Devdiscourse News Desk | Updated: 08-10-2025 13:48 IST | Created: 08-10-2025 13:48 IST
WTO Members Push Forward on Reform as DG Okonjo-Iweala Urges Modernization
Ambassador Petter Ølberg of Norway, serving as the facilitator for WTO reform, presented his latest report, noting strong engagement from members but continued divergence on key issues. Image Credit: Twitter(@wto)

At a two-day meeting of the World Trade Organization’s (WTO) General Council held on 6–7 October 2025 in Geneva, Director-General Ngozi Okonjo-Iweala renewed her call for fundamental reform of the global trade body, stressing that while the organization faces “serious challenges,” it continues to provide “important tools worth preserving.”

The meeting—one of the WTO’s most consequential gatherings since the 13th Ministerial Conference (MC13)—featured discussions on institutional reform, e-commerce, investment facilitation, and development issues, alongside debates about trade tensions, industrial policy, and sustainable agriculture. The session also saw Saudi Arabia announce its readiness to host the WTO’s 15th Ministerial Conference (MC15), following Cameroon’s hosting of MC14 in March 2025.

Remembering a Founding Figure

Proceedings opened with a moment of silence for Carlos Pérez del Castillo, former Ambassador of Uruguay to the WTO, who passed away in August. General Council Chair Ambassador Saqer Abdullah Almoqbel of Saudi Arabia praised Pérez del Castillo as “a central figure in the WTO’s formative years,” recalling his tenure as General Council Chair from 2003 to 2004 and his “lasting contributions to multilateralism.”

Numerous delegations also paid tribute, underlining his “commitment to consensus and fair negotiation.”


Okonjo-Iweala: “The Cry for Reform Is Palpable”

Reporting in her capacity as Chair of the Trade Negotiations Committee, Director-General Okonjo-Iweala said her consultations with global leaders, ministers, civil society, and the private sector reveal “a palpable cry for a rethink of the WTO and its role in shaping 21st-century trade.”

“We must think carefully about what works, how to sustain it, and how to strengthen it,” she told members. “The WTO is not perfect, but it provides tools that are worth preserving. Our task is to modernize them for today’s realities.”

The Director-General emphasized that the multilateral trading system, anchored in WTO rules, remains vital to global stability—facilitating trade, reducing costs, protecting intellectual property, and fostering technological progress. She stressed, however, that members must be candid about the organization’s shortcomings.

“There is an expectation that this organization will modernize more with the times,” Okonjo-Iweala said, pointing to emerging areas such as digital trade, artificial intelligence, and services that demand updated regulatory approaches.

At MC12 in 2022, members agreed to undertake a comprehensive review of the WTO’s functions, with instructions at MC13 to continue this work through the General Council and its subsidiary bodies. Progress on this mandate is expected to be a central theme at MC14 in March 2025 in Yaoundé, Cameroon.


WTO Reform: Progress and Challenges

Ambassador Petter Ølberg of Norway, serving as the facilitator for WTO reform, presented his latest report, noting strong engagement from members but continued divergence on key issues.

Ølberg reported that a plenary meeting on 24 September reignited “collective reflection” on WTO reform, structured around three central tracks: governance, fairness, and issues of our time.

“Decision-making and development are the logical starting points,” Ølberg explained, describing decision-making as a “gateway issue” critical to unlocking progress in rulemaking and implementation.

He announced plans to present a Facilitator’s Report at the December General Council meeting, summarizing discussions, identifying convergence and divergence, and proposing practical options for consideration at MC14.

Ølberg appealed to members to rise above national interests in the spirit of global cooperation:

“Reform that everyone claims to support cannot succeed unless some are prepared to cede a portion of national interest for the common good. That is what leadership demands.”

More than 50 members took the floor, reaffirming their support for inclusive, transparent, and member-driven reform. Several stressed that development concerns, including special and differential treatment for developing economies, must remain at the core of discussions.

The United Kingdom reported on a Wilton Park conference (1–3 October) that gathered WTO officials, academics, and trade ministers to explore the organization’s future. The UK noted a “wide divergence of views,” but said the frank exchanges could help generate constructive proposals ahead of MC14.


E-Commerce and Digital Trade

Ambassador Richard Brown of Jamaica, facilitator of the Work Programme on Electronic Commerce, briefed members on recent consultations, including a 25 September discussion. He reported strong support for continuing the Work Programme and the moratorium on customs duties on electronic transmissions, a measure critical to maintaining predictability in digital trade.

While most members favored extending the moratorium, a few expressed reservations, citing concerns over revenue losses and policy space. The issue will be a focal point at MC14, where members must decide whether to renew the moratorium.

“The majority of delegations see continuation of the moratorium as vital to digital trade stability,” Brown said, “but consensus is not yet assured.”


Investment Facilitation for Development

Reform discussions also revisited the Investment Facilitation for Development (IFD) initiative, which seeks to simplify and enhance investment conditions for developing economies.

Despite the backing of 127 co-sponsors, members again failed to achieve consensus on incorporating the IFD Agreement into Annex 4 of the Marrakesh Agreement, marking the tenth unsuccessful attempt.

Chile, speaking for the co-sponsors, reiterated the “urgent need” for inclusion, citing its potential to boost investment inflows and technical assistance for developing and least-developed countries. However, three members maintained reservations, urging further dialogue.


Addressing Global Trade Tensions

The meeting also grappled with rising global trade tensions.

Brazil introduced an agenda item on rethinking the rules-based multilateral trading system, arguing that the WTO’s regulatory framework has not kept pace with new technologies and trade patterns. Brazil outlined three potential reform pathways:

  1. Incremental updates (insufficient, in its view);

  2. Ambitious efforts to create entirely new rules; and

  3. A middle-ground approach combining preservation of existing principles with flexible new frameworks.

“We must develop a roadmap for meaningful reform,” Brazil urged, emphasizing the need for less judicialized dispute settlement and greater flexibility in decision-making.

China, meanwhile, reintroduced its “Stability, Development and Reform” (SDR) proposal for the fourth time, calling on members to collectively safeguard and strengthen the multilateral system. Eleven members spoke on this item, with most supporting China’s emphasis on stability and development, though one member questioned Beijing’s consistency in upholding these principles.

The European Union, co-hosting a session with Mexico on industrial policy financing, warned that uncoordinated subsidies risked distorting global markets. Japan and Brazil will co-host the next dialogue session in November to deepen discussion on responsible industrial policy.


Sustainability and Agriculture

Brazil presented a summary of its Dialogue on Sustainable Agriculture, held on 22 September, attended by 41 delegations. The initiative aims to integrate sustainability into WTO agricultural disciplines without creating unnecessary trade restrictions or distortions.

“We must strengthen WTO rules to support a sustainable and resilient food system,” Brazil said.

Members broadly supported continued dialogue, though some cautioned against launching new work streams ahead of MC14, urging focus on practical, achievable outcomes.


Development Issues and LDC Support

On behalf of the Group of Least Developed Countries (LDCs), The Gambia renewed the call for transitional support measures for LDCs graduating from that category, consistent with commitments made at MC13.

LDC representatives stressed that graduation should be “a moment of pride, not a source of vulnerability,” urging measures to ensure continued access to preferential trade schemes and technical assistance.

The Council also received updates on the integration of small and vulnerable economies (SVEs) into global trade, with a Dedicated Session scheduled for 14 October to review a Secretariat report on trade trends, resilience, and food security challenges.


Saudi Arabia to Host WTO’s 15th Ministerial Conference

Closing the session, Ambassador Almoqbel, representing Saudi Arabia, announced the Kingdom’s intention to host the 15th WTO Ministerial Conference (MC15), following Cameroon’s hosting of MC14 on 26–29 March 2025.

Ministerial Conferences, held roughly every two years, serve as the WTO’s highest decision-making body. Almoqbel said Saudi Arabia’s offer “reflects our strong commitment to multilateralism and to revitalizing the global trading system for a new era.”


A Call for Renewal

In her closing remarks, DG Okonjo-Iweala reiterated her belief that the WTO remains central to global prosperity but must adapt to survive.

“We are facing a world of shifting power dynamics, emerging technologies, and rising protectionism. Reform is not optional—it is imperative,” she said. “If we can combine pragmatism with ambition, the WTO can once again deliver hope for inclusive and sustainable growth.”

As members prepare for MC14 in Cameroon, optimism and caution coexist: while consensus remains elusive, engagement across diverse issues—from digital trade to sustainability—signals a shared commitment to keeping multilateralism alive in a divided world.

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