A number of the world’s top trade ministers met last week in Ottawa, Canada to discuss the significant issues facing the World Trade Organization. At the conclusion of the conference, which was held on October 24th and 25th, the trade ministers issued a joint statement describing the current situation at the WTO as “no longer sustainable.”
In the statement, the trade ministers affirmed their “clear and strong support for the rules-based multilateral trading system” and stressed the “indispensable role that the WTO plays in facilitating and safeguarding trade.” They noted, however, that three issues need serious attention from WTO members, including (i) the appointment of new members to the WTO’s Appellate Body, (ii) the “re-invigoration” of the negotiating function of the WTO, which has been dormant, and (iii) improvement of the monitoring process for, and the transparency of, members’ trade policies. The statement did not identify any specific “next steps” that will be taken to address these issues.
Canada convened the ministerial meeting, which was attended by trade ministers from Australia, Brazil, Canada, Chile, the European Union, Japan, Kenya, Mexico, New Zealand, Norway, Singapore, South Korea, and Switzerland. Neither the United States and China, the two largest importing and exporting markets in the world, participated in the meeting.
Australian Trade Minister Simon Birmingham expressed optimism that, without the participation of China and the United States, “the two giants causing tension,” the participating members could more constructively develop ideas on how to reform the WTO. Canadian Trade Minister Jim Carr acknowledged that the participating members would face difficulty when seeking to bring the United States and China to the negotiating table. When asked how the group planned to engage the United States and China in the conversation Carr responded by suggesting that could be done through “force of argument.”
Some ministers expressed uncertainty about the ultimate goals of the United States for the WTO. Swiss State Secretary for Economic Affairs Markus Schlagenhof said, “We actually do not know where [the U.S.] would like to end up. Would they be happy with reform or would they be happy to go back to the old GATT system?” Ultimately, Schlagenhof viewed the Ottawa conference as a step in the right direction, saying, “We have to put things on the table to engage people in a dialogue. If you’re not setting out the question you won’t get a response.”
As previously reported, the United States has a disagreement with other WTO members over the process of appointing new members to the Appellate Body. The United States has also expressed dissatisfaction with the amount of time it has taken for the Appellate Board to issue its decisions. Consequently, the United States has used its power to block new appointments to the Appellate Body. As the terms of the Appellate Body members have expired, there are only three remaining members on the Appellate Body. Three members are required to issue a ruling in any appeal.
