Trade ministers from almost every country in the world are gathering in Abu Dhabi today, Monday, for a World Trade Organization (WTO) meeting aimed at establishing new rules for global trade. However, even the organization's ambitious director, Ngozi Okonjo-Iweala, has sought to temper expectations. The WTO, which has been in existence for nearly 30 years and underpins 75% of global trade, is working to reach consensus on agreements, but such efforts have become more challenging with increasing evidence that the global economy is splitting into separate blocs.
Ngozi Okonjo-Iweala told reporters before the meeting, "Politically, this is an extremely difficult time," referencing wars, tensions, and upcoming elections. "(But) I hope we can achieve some accomplishments." While reaching an agreement among around 160 ministers on significant internal reforms faces obstacles, negotiators still hope to reach a deal that can support global fish stocks and protect fishermen through a prohibition on government subsidies.
One trade delegate told Reuters, "We are not in dreamland here. International cooperation is in bad shape. Real success will be (in the matter of) fish along with two or three other issues." Other outcomes expected from the four-day meeting, which may either be specific or achievable, include the accession of two new members, Comoros and Timor-Leste, and reaching an agreement among about 120 countries to remove barriers to development and investment.
The more complex areas are likely to involve extending the voluntary moratorium for 25 years on tariff applications for digital trade, which South Africa and India oppose, and reaching an agreement on agricultural trade rules that have stymied negotiators for decades.
#### Future Importance
Thani Al-Zeyoudi, the UAE's Minister of Trade and president of the conference, stated that trade and sustainability will be on the conference agenda as part of efforts to ensure the organization's relevance in the future. He told Reuters, "The next generation will not have the same trade ecosystem that we have now, and we do not want the organization to fall behind when the next generation takes on trade issues."
Factors that might have a positive impact include Okonjo-Iweala's determination, the former Nigerian finance minister, whose insistence on conducting overnight meetings helped seal a package of deals in Geneva in 2022. Alain Yarovitch, a partner at Akin Gump Strauss, remarked, "What makes me somewhat more optimistic than others at this stage is that the Director-General is a very proactive individual and willing to push the ministers. The UAE Trade Minister is also highly focused on results."
John Denton, Secretary-General of the International Chamber of Commerce, emphasized that even modest outcomes, such as a forward-looking ministerial statement that demonstrates a common goal among governments, would be worthy of attention. He stated, "The WTO is ultimately a public good, and our view is that there are significant costs to the real economy from any erosion of this system."
