WTO reform talks in Cameroon face feep divisions and high stakes

Trade ministers from around the world are set to convene in Yaoundé for high-stakes talks on reforming the World Trade Organisation, amid warnings that failure to reach an agreement could push countries to develop trade rules outside the multilateral system, as per Reuters.

The four-day meeting in Cameroon comes at a time of mounting concern over global trade disruptions, including the impact of the ongoing conflict involving the US and Israel with Iran, as well as a year of tariff volatility triggered by policies introduced under Donald Trump.

Business leaders have raised an alarm over the potential economic fallout. John Denton, head of the International Chamber of Commerce, warned that rising energy prices linked to the conflict could trigger severe industrial disruption. “From a business perspective, this could yet become the worst industrial crisis in living memory,” he said, also pointing to risks to food security in Africa due to disruptions in fertiliser supplies.

Ministers are arriving without a clear roadmap for reform after years of stalled negotiations and a six-year paralysis of the WTO’s dispute settlement system. Deep divisions remain among major economies. The US has expressed support for reform in principle but is resisting a detailed work plan, while the European Union, United Kingdom, and China are backing a more structured approach, according to internal documents.

WTO Director-General Ngozi Okonjo-Iweala has cautioned that negotiations are likely to be difficult.

Diplomats warn that failure to produce concrete outcomes could undermine the organization’s relevance. Erwin Bollinger said ahead of the talks: “If we don't achieve anything concrete, the WTO will lose its attractiveness and relevancy.”

Similar concerns were echoed by Chris Bryant, who warned of fragmentation in the global trading system. “My anxiety is if we ministers don't get this week right, you might see a disorderly collapse of the WTO and some people writing a new rule book,” he said.

Tensions are expected to center on disagreements between the US and India over whether to extend a moratorium on customs duties for digital downloads. Jamieson Greer is expected to tell members that Washington is “not interested” in a temporary extension, favoring a permanent arrangement. India is expected to maintain its opposition, while some other countries are pushing for a two-year extension.

Yeo Han-Koo, representing South Korea, warned that failure to extend the moratorium would be a “big blow” to both the WTO and the global economy.

Meanwhile, Taiwan will not participate in the meeting after the host country referred to it as a province of China, highlighting ongoing geopolitical sensitivities surrounding the gathering.

By Tamilla Hasanova