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Image header Agence Europe
Europe Daily Bulletin No. 11923
EXTERNAL ACTION / Trade

At 11th WTO Conference in Buenos Aires, multilateral trading system plays for survival again

Coming from five continents, from the big trading powers of the countries representing the diversity of the developing world, resounding calls were multiplied, at the opening of work for the 11th WTO ministerial conference on Sunday 10 and Monday 11 December, to preserve the multilateral trade system governed by the WTO, against which the USA lead the charge on Monday.

The successes of our last two ministerial conferences (in Bali in 2013 and Nairobi in 2015) brought some optimism that despite significant differences of views among its members, the WTO is still capable of delivering important negotiated outcomes.  However, we start this year's ministerial conference with more questions than answers”, European Trade Commissioner Cecilia Malmström regretted, in the plenary session.

The (multilateral trade) system is being challenged, members show insufficient collective ownership and are divided on key questions such as what the WTO should be doing.  And there are growing calls for conducting business outside the multilateral setting”, she continued.

Among the “many problems”, Malmström deplored the procedural logjam on subjects that are undeniably critical for world trade today, and the futile discussion on the existence of a mandate.  “The problem is systemic and starts jeopardising the whole of the organisation”, she warned.

Malsmtröm was referring to the stalemate in the United States over renewing the mandates of three judges of the appeals body of the WTO dispute settlement mechanism.

The WTO is losing its essential focus on the negotiations and becoming a complaints organisation, the American Trade Representative, Robert Lighthizer, had previously complained. He has confirmed the charge against the multilateral institution led by Donald Trump's administration.

“We need to clarify our understanding of development within the WTO. We cannot sustain a situation in which new rules can apply only to a few and the others will be given a pass in the name of self-proclaimed development status”, Lightlizer also regretted. “There is something wrong when five of the six richest countries in the world presently claim developing country status at the WTO”, he stressed.

Going on to add that the WTO is a “very important organisation”, Lighthizer rejected the idea of any negotiations on new rules when many of the current rules are not being honoured.

For his part, the Chinese trade minister, Zhon Shan, urged his counterparts to have faith in the multilateral trade system “now more than ever” and warned against resurgent protectionism.

The WTO's problems will be resolved with more WTO and not less WTO, the Argentinian President, Mauricio Macri, said on Sunday, stressing Argentina's willingness to work for fairer and more sustainable trade, “to make life better for the populations”.

On Sunday, his Mercosur counterparts, the presidents of Brazil, Michel Temer, Uruguay, Tabaré Vázquez and Paraguay, Horacio Cartes, stood alongside him at the beginning of the session.

The Mercosur countries plus Chile, Colombia, Peru, Suriname, Guiana and Mexico have signed a statement reiterating their commitment to the multilateral trading system.  (Original version in French by Emmanuel Hagry)

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