ICC has proposed a framework that sets out a holistic vision for reform of the World Trade Organization (WTO) from the perspective of the global business community. Such a framework is necessary to ensure a comprehensive approach to reform across the three vital functions of the organisation.
Reforming the WTO and multilateral trading system
The global business community places great importance on the WTO and the broader multilateral trading system.
More than a quarter of a century after its creation, the WTO remains the most important forum for creating, monitoring and enforcing trade rules. However, the WTO is in urgent need of reform and new rules must be written to ensure it continues to serve the needs of businesses — the ultimate end-users of the global trading system.
The global business community is deeply concerned by the steady erosion of the multilateral trading system, which imposes significant costs on business, particularly MSMEs who do not have the resources to navigate an increasingly complex and fragmented global trading environment.
Why do we need a holistic approach to WTO reform?
Proposals have been made to address many of the issues facing the WTO, some dating back more than a decade. But an effective approach to the problems and challenges facing the system must take careful account of the interconnectedness of the WTO’s three core functions, which were designed to bolster one another and carry equal weight:
- negotiation,
- dispute settlement
- and monitoring and deliberation.
Any chronic imbalance cannot be sustained — failings in one function inevitably weaken the others. Any effort to reform the WTO must address all policy, legal, and architectural issues comprehensively.
The road to WTO reform
At the 13th WTO ministerial conference (MC13) in February 2024, ICC on behalf of the global business community urges trade ministers to reaffirm the common purpose of the WTO, agree on a coherent and holistic vision for WTO reform based on the organisation’s foundational principles, and deliver on a work programme for WTO reform covering all three pillars of the organisation.
The framework’s primary aim to is to encourage WTO members to align behind common vision and work programme for reform at MC13. ICC will be issuing detailed guidance and deeper dives on specific items separately to encourage and support discussions and negotiations at relevant times..
