WTO Reform: "Panel of Eminent Persons" nixed by US

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World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has proposed establishing a panel of “eminent persons” to conduct an in-depth analysis of WTO reform—an idea swiftly rejected by the United States.

At a meeting of the General Council, Okonjo-Iweala suggested that an independent panel of experts could evaluate various reform proposals and compile a report or recommendations for ministers to consider at the next WTO ministerial conference. She emphasized that the process should be efficient, leveraging the panel’s independence to avoid prolonged deliberations.

However, the United States voiced strong objections to the proposal, arguing that WTO members—not external experts—should be responsible for reform efforts, according to sources familiar with the discussions. Washington rejected the notion of outsourcing WTO reform, asserting that such an approach would leave members in a passive, reactive role while allowing outsiders to dictate the organization’s agenda.

Additionally, the United States raised concerns about the financial and administrative resources required to support an initiative that WTO members had not requested, sources said. India also reminded the Director-General that reform proposals were already under consideration and called for greater clarity regarding the scope of the suggested reforms, noting that they could involve politically sensitive issues for member states.

Defending her proposal, Okonjo-Iweala stated:

“It seems to me an opportune time to launch serious reflections on the system, examining what works, what does not, and how we can reform it. While reform efforts have been ongoing in Geneva—particularly through a ‘reform by doing’ approach—I believe it is time to elevate the level, depth, and breadth of these efforts. We need a comprehensive review to ensure the WTO is fit to address 21st-century global trade challenges.”

She suggested that this in-depth review should be conducted by an independent panel of eminent persons, chaired by a respected political leader and composed of experts in both technical trade issues and the political economy of trade. Members would have the opportunity to nominate individuals to ensure balance and ownership, but the panel would operate independently.

U.S. Warns Against Politicizing Accessions

In another discussion at the General Council meeting, the United States urged Okonjo-Iweala to avoid politicizing the accession process for new WTO members. This issue has gained prominence as negotiations are underway for a “development package” at the WTO’s 14th Ministerial Conference (MC14), scheduled to take place in Yaoundé, Cameroon, next year.

Washington expressed concerns that accession processes were being expedited without adequate deliberation or timely submission of necessary documents, sources said. The United States specifically cited the accession processes for Somalia and Ethiopia as examples.

On accessions, Okonjo-Iweala noted that Somalia’s first Working Party meeting had taken place on Monday, while Ethiopia’s Working Party was scheduled to resume on March 19 after a five-year hiatus. She added that Working Party meetings for Bosnia, Equatorial Guinea, Azerbaijan, and others were planned for later this year. These developments, she suggested, could contribute to tangible outcomes for MC14 and beyond.

However, the United States maintained that the substance of accession discussions should dictate their timeline, expressing skepticism about the Director-General’s optimism. Washington also raised concerns over a specific accession case, highlighting that some requested documents from five years ago remained outstanding. It stressed that the accession process requires time and should not be subject to political considerations, according to sources familiar with the discussions.

Additionally, the United States emphasized the importance of timely document circulation, noting that late submissions hinder proper preparation and meaningful deliberation. It also voiced disappointment over the limited time allocated to the Somali Working Party meeting, arguing that this had constrained substantive discussions with the Somali delegation.

One source familiar with the developments remarked:

“The WTO Director-General is shaping a ‘Development Package’ for MC14, with least-developed country (LDC) accessions, such as Ethiopia’s, taking center stage. However, as the United States has pointed out, this reflects a broader trend of politicizing WTO accessions, where optics risk taking precedence over substance.”

Another observer noted that simply increasing WTO membership without addressing structural challenges would not significantly improve the position of developing and least-developed countries in the global economy.

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