WTO Meeting In Abu Dhabi Focuses On Modest Outcomes Amid 'Tough Time': 'Not In Dreamland'

The World Trade Organization (WTO) is holding a crucial meeting in Abu Dhabi, where ministers from nearly every country are aiming to set new global commerce rules. However, the WTO’s chief has cautioned against overly ambitious expectations.

What Happened: The WTO’s biennial meeting, which commenced on Monday, is expected to be challenging due to the current global political climate, reported Reuters. Ngozi Okonjo-Iweala, the WTO’s director-general, acknowledged the difficulty of reaching a consensus amid ongoing wars, tensions, and upcoming elections.

“Politically it’s quite a tough time,” Ngozi Okonjo-Iweala said referring to wars, tensions and upcoming elections. “(But) I’m hopeful we will still be able to pull out some of the deliverables.”

Despite these challenges, negotiators are striving to reach agreements on crucial internal reforms, including a potential ban on government subsidies to protect global fish stocks and fishermen.

However, the overall outlook for the meeting is cautious, with one trade delegate saying, “We are not in dreamland here. International cooperation is in bad shape. Real success would be fish, plus two or three things,” according to the report.

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Some of the more achievable outcomes of the four-day meeting include the accession of two new members, Comoros and East Timor, and a potential deal among around 120 countries to remove investment barriers that hinder development.

However, more contentious issues, such as extending a 25-year moratorium on applying tariffs on digital trade and reaching an agreement on agriculture trade rules, are expected to be more challenging.

John Denton, Secretary General of the International Chamber of Commerce, stated that even a modest achievement, such as a forward-looking ministerial statement demonstrating shared objectives among governments, would be worthwhile to pursue.

Why It Matters: The WTO’s meeting is taking place against a backdrop of recent significant decisions and developments in global trade. In August, the WTO ruled against China’s retaliatory tariffs on $2.4 billion of U.S. goods, a move that could have a lasting impact on global trade dynamics.

Additionally, the U.S. and India resolved six disputes at the WTO in June, underscoring the ongoing significance of the WTO in shaping global trade relations.

The current WTO meeting in Abu Dhabi is crucial for setting the future trajectory of global trade rules and agreements, with the potential to impact economies worldwide.

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