WTO stands firm in mission to promote free trade

The European Union (EU) recently pledged its support and partnership with the World Trade Organisation (WTO) in building a fair, free and transparent international trading system. This encouragement carries significant meaning as the WTO faces numerous challenges, notably the pressure for comprehensive and urgent reform after 30 years of development.

The visit of European Commissioner for Trade and Economic Security Maros Sefcovic to WTO headquarters in Geneva, Switzerland, coincided with a special milestone - the organisation’s 30th anniversary.

Affirming support for WTO’s reform efforts, Sefcovic emphasised that just as businesses need a stable environment to develop, international trade depends on fair and transparent competition rules. The European Commission committed to promoting cooperation to build a stable global trading system, creating more opportunities for EU businesses.

The visit demonstrates the EU’s special interest in the WTO’s future, a concern shared by many other nations. There is growing sentiment that WTO regulations have become outdated and its role in maintaining international trade stability has diminished, particularly amidst rising protectionism and geopolitical tensions.

Thirty years ago, on January 1, 1995, the WTO officially began operations following the Marrakesh Agreement signed in Morocco. Over three decades, the WTO has successfully fulfilled its mission as a fortress protecting free and fair trade between nations and promoting economic growth. The WTO has helped resolve trade disputes and supported many developing economies in deeper integration into global trade.

This international economic organisation’s persistent efforts and proud achievements cannot be denied. Speaking at the 30th anniversary of the Marrakesh Agreement, WTO Director-General Ngozi Okonjo-Iweala noted that over the past three decades, more than 1.5 billion people have escaped extreme poverty. This achievement realises the WTO commitments outlined in the Marrakesh Agreement. Global trade in 2023 increased fivefold compared to 1995, reaching over 30.4 trillion USD. Exports from low and middle-income countries have been strengthened, contributing to poverty reduction.

However, after 30 years, enthusiasm for free trade agreements is gradually giving way to protectionism. Differing interests between developed and developing nations hinder consensus on various trade issues. Trade tensions between major economies have pushed disputes beyond the WTO’s scope of resolution. Since late 2019, the US has blocked the appointment of new judges to the WTO’s Appellate Body, leaving many disputes unresolved. These challenges necessitate urgent WTO reform.

WTO Director-General Okonjo-Iweala, once expected to bring fresh air to the organisation, has been implementing reforms to restore faith in the WTO amid major international trade disruptions due to disease, conflict and inflation. The WTO leader affirmed that reforming the dispute settlement system is a central task of her directorship. The WTO recently admitted Comoros and Timor-Leste, bringing its total membership to 166 countries. It also launched a 50 million USD fund to help women entrepreneurs in developing countries seize opportunities from the digital economy.

Reflecting on the WTO’s journey, the Director-General proudly affirmed that despite many difficulties, the organisation’s commitments continue to serve as a lighthouse guiding countries on their journey of international economic integration. The support and partnership of nations serve as motivation for the WTO to continue reforms, standing firm in its mission to build a transparent, free, and fair multilateral trading system.

NDO