Yaoundé: Trade ministers gather for make-or-break WTO reform talks ⁰

Trade ministers from across the world convened in Cameroon’s capital on Thursday for four days of negotiations on reforming the World Trade Organization, with diplomats warning that failure to reach an agreement could push countries to set trade rules outside the body entirely — a development that could accelerate the fragmentation of the global trading system.

The gathering in Yaoundé arrives at an exceptionally fraught moment. Ministers are contending with the economic fallout from the US-Israeli war on Iran, which has sent energy prices soaring and disrupted food supply chains, compounding a year of tariff turmoil triggered by President Donald Trump’s aggressive use of trade measures. “From a business perspective this could yet become the worst industrial crisis in living memory,” said John Denton, secretary-general of the International Chamber of Commerce, pointing specifically to fertiliser supply disruptions that threaten food security across Africa.

Deep divisions, no roadmap

Ministers arrive without a clear reform agenda, after years of stalled multilateral deals and six years of paralysis in the WTO’s dispute settlement system. The divisions are significant: the United States supports reform in principle but is resisting a detailed work plan, while the European Union, Britain, and China are pushing for one, according to internal documents seen by Reuters. WTO Director-General Ngozi Okonjo-Iweala said she expected the talks to be difficult.

The stakes of failure have been laid out starkly by several delegations. Swiss Ambassador Erwin Bollinger warned that without concrete outcomes, “the WTO will lose its attractiveness and relevancy.” UK trade minister Chris Bryant went further, raising the prospect of institutional collapse. “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.

Flash points

Among the most contentious issues is the future of a moratorium on customs duties for digital downloads, which has become a battleground between Washington and New Delhi. US Trade Representative Jamieson Greer is expected to tell members the United States is “not interested” in a temporary extension, insisting only a permanent arrangement is acceptable. India is likely to hold its opposition, while other countries are seeking a two-year extension. South Korea’s trade minister called a failure to extend the moratorium a “big blow” to both the WTO and the global economy.

The talks have also been overshadowed by the absence of Taiwan, which was excluded after host country Cameroon described it as a province of China — a move likely to draw its own diplomatic fallout on the sidelines of the conference.

Source: Businessday.ng