No Progress on WTO Big-Ticket Items

The second day of the World Trade Organization’s (WTO) General Council (GC) meeting concluded on a bleak note, with little to no progress on key issues, including agriculture, the second half of the proposed fisheries agreement, and ongoing concerns over reforming the dispute settlement system (DSS), according to people familiar with the discussions.

Several members reportedly raised sharp concerns about the lack of progress in elements such as the "scope of the mechanism" and the "standard of review." Developing countries—Egypt, India, Chad (on behalf of the African Group), and South Africa—emphasized the importance of accessibility.

Given the complexities surrounding DSS reform, reaching a decision to restore a two-tier dispute settlement system by the end of the year appears unlikely, said sources familiar with the discussions.

Appointment of Chairs

During the meeting, members also discussed enhancing the process for appointing chairs of WTO bodies. Several countries stressed the need for consensus-based decision-making. Singapore, on behalf of Canada and Chile, submitted a proposal outlining practical steps to improve the appointment process, with the goal of reaching an agreement at the next GC meeting in December.

The proposal aims to prevent prolonged vacancies in negotiating bodies and introduces specific timelines and procedures for the nomination process across other WTO bodies. However, the GC suggested that further discussion is required and encouraged proponents to engage in outreach before revisiting the issue at the December meeting. The GC chair announced plans to initiate the 2025 appointment process soon.

Sustainable Agriculture

Meanwhile, Brazil requested the GC and the Secretariat to organize a retreat on its proposal, “Dialogue on Sustainable Agriculture in the Multilateral Trading System” (WT/GC/W/938, restricted). Brazil’s five-page proposal raises several fundamental issues neglected in the Doha agriculture negotiations, including:

• Policies supporting sustainable and productivity-enhancing agricultural practices.
• Strong, science-based institutional frameworks and research programs to foster innovation and new agricultural technologies.
• Mechanisms to avoid overproduction, resource misallocation, and market distortions.
• Policies promoting food access for populations facing food insecurity, while enabling small and family farmers to participate in domestic markets.
• Technology transfer to enhance food security, build agricultural resilience, and promote low-carbon, climate-friendly practices.
• Improved market access for agricultural products produced through sustainable methods.
• Cooperation on environment-related agricultural standards to reduce fragmentation.

Dispute Settlement Reform

Concerns over restoring a two-tier DSS remain prominent. Sources indicate that the goal of achieving a resolution by year-end is unlikely. Discussions on integrating the Investment Facilitation Agreement for Development also faltered after India, South Africa, and Namibia declined to join the consensus, according to sources.

GC Chair Ambassador Petter Olberg of Norway has drawn criticism for initiating the appointment process for the next Director-General without explicit consultation. His silence on this issue during the meeting raised concerns about the erosion of consensus-based decision-making, according to sources. Although the United States has publicly expressed discomfort with Olberg’s decision, it did not raise the issue at the meeting, nor did its delegation respond to requests for comment.

During discussions on DSS reform, Brazil raised fundamental concerns beyond accessibility, highlighting the contents of a confidential document. Brazil urged members to uphold ministerial mandates, warning that failure to address the DSS issue would weaken the WTO’s credibility and undermine the multilateral trading system.

Brazil emphasized the importance of restoring the DSS’s enforcement function, arguing that a dysfunctional system would harm developing countries. It stressed that while accessibility is essential, fixing the core issues of the DSS should take precedence, cautioning against making accessibility a precondition for reform.

South Africa echoed Brazil’s concerns, advocating for a “well-functioning, rules-based DSS that is responsive to members' interests, with compulsory jurisdiction, an effective appeals mechanism, independent adjudicators, and timely, binding rulings.” It also expressed caution over using small group meetings to accelerate discussions, stressing that “substance and process are interlinked” and calling for an inclusive and transparent approach.

Many members emphasized the need to accelerate discussions on Part C of the 19-page WTO reform document, which remains critical to achieving progress.