The US has de facto withdrawn from the WTO’ said Pascal Lamy, former DG, WTO, at a roundtable organised by CUTS International in Geneva recently.
In his welcome remarks, Pradeep S. Mehta Secretary General, CUTS International pointed out that even the intelligentsia feel that the WTO has become obsolete. He felt that we need a targeted campaign to demystify the multilateral trading system and explain its value to the ordinary people around the world.
Lamy was speaking as the keynote speaker at “The Roundtable: “WTO 2.0 Reforms Imperative” which was organised to take on board issues which can help revive the WTO. There were about 60 distinguished participants physically and a large number who watched the live stream.
Lamy’s statement can be viewed in the context of the US’s trade policy which has gone hay wire and does not respect the norms of non-discrimination and fairness to pursue rules-based trade among the 167 member countries of the WTO. It has been using tariffs, beyond the agreed norms, as ways of sanction against countries which are not following the US diktat.
Furthermore, it has not been paying up its membership fees for the last two years which has inconvenienced WTO’s operations. For instance, the annual WTO Public Forum held on 17-18 September has been shrunk from 4 days to 2 days.
Lamy highlighted three distinct challenges facing the trading system: In the short term, the challenge is U.S. protectionism, which has already weakened the WTO’s dispute settlement system.
In the medium term, the real test is geopolitical rivalry, particularly with China, which risks fragmenting the system into competing blocs.
In the long term, the shift in trade policy from protecting producers to protecting people—through measures on climate and risk—will redefine the very nature of global trade.”
The roundtable, on the urgent need for WTO reform, brought together ambassadors, trade officials, business leaders, civil society, and policymakers to chart a path for WTO reforms. Their collective message was clear: the stakes are high, the risks of inaction are severe, and the time for half-measures has passed. There were four women and six men on the balanced panel.
Participants issued a stark warning: without urgent reform of the WTO, exports from major economies could plummet by up to 40%.
The discussion, held ahead of the upcoming WTO Ministerial Conference-14 in Cameroon in March, 2026, underscored both the fragility of the multilateral trading system and the opportunities for bold, inclusive reform.
Speakers expressed concern over recent shifts in U.S. trade policy, noting that recurring protectionist measures have positioned Washington increasingly at odds with the multilateral trading framework.
Rajesh Aggarwal, former Indian trade negotiatordelivered the main address which highlighted the situation of the same and suggested several steps to take forward the WTO.
He cautioned that diminishing U.S. engagement risks weakening confidence in global trade rules and could contribute to further fragmentation of the international trading system.
In addition, he pointed out that “reform must balance fairness and credibility; without safeguards, developing countries risk carrying an unfair burden in the system.”
Aggarwal cautioned that a failure of the WTO could have severe repercussions for global supply chains, referencing economic models that project export declines of up to 40% for countries such as India. Valerie Picard, Head of Trade Policy at International Chamber of Commerce, concurred with these views, while emphasizing that “the private sector is ready to be a constructive partner in driving reform.”
Hamid Mamdouh former WTO Director, emphasised that it would be essential for MC14 to conclude with a reforms agenda, if not a reforms round.
Representatives from the private sector encouraged governments to overcome political impasses, offering their technical expertise in arbitration and dispute resolution to help advance meaningful reform.
Clare Kelly, Ambassador of New Zealand to the WTO, echoed the concerns of the private sector, underscoring the importance of enforcement mechanisms by stating that: “Enforcing commitments through a functioning dispute settlement system is vital for smaller economies—it is the backbone of trust in the WTO.”
The discussion on consensus-based decision-making revealed a range of perspectives. Some participants expressed concern that the practice, at times, enables more powerful members to stall progress, thereby reducing the system’s responsiveness.
Tan Hung Seng, Ambassador of Singapore to the WTO, said that we should banish two words from any future discussion i.e. consensus and lack of trust. The practice of consensus has been abused by certain powerful members stalling any progress. He stressed: “Consensus should not become a recipe for paralysis.”
James Baxter, Australia’s Ambassador to the WTO, endorsed these perspectives, emphasising that “consensus must deliver outcomes, not paralysis.” Baxter also stressed on the value of plurilaterals as the way forward to keep the WTO active.
Others highlighted the value of consensus as a cornerstone of legitimacy and inclusivity within the multilateral framework. For instance, Matthew Wilson, the Ambassador of Barbados to the UN and WTO, noted that removing the term consensus in decision-making “is like removing the term united from the United Nations.”
Wilson also highlighted that plurilaterals are the pragmatic alternative to the multilateral deadlock. He cautioned that while we must remain steadfast on the reform agenda, he wondered whether we have been looking at this issue through the wrong lens.
He stated that in the instances of the Investment Facilitation for Development Agreement and Fish Subsidies-2 accord, which have garnered wide support, there was major obstruction from some countries.
This divergence of views underscored the broader challenge of balancing efficiency with equity in global rulemaking.
A call for a “coalition of the willing” echoed throughout the session, reflecting growing momentum among reform-oriented WTO members. Rather than delaying action in pursuit of universal consensus, participants encouraged like-minded countries to take the lead at MC14—while keeping the process open and inclusive for others to join over time. This, according to the participants, could be a turning point — where reform is initiated not by all, but by those ready to move forward.
Panellists underscored that WTO reform should aim not only to stabilize global markets but also to contribute meaningfully to broader social and economic transformation.
Sofía Boza, Ambassador of Chile to the WTO, emphasized: “SMEs, women, and youth must be at the heart of trade reform, so that openness translates into inclusive development.” From the floor, Carolyn Deere-Birkbeck of TESS pointed out that while we discuss the reforms agenda for the MTS, we should not lose sight of the SDGs,
Sustainability was widely regarded as essential, with participants stressing that without aligning trade with development, equity and environmental objectives, long-term prosperity and stability remain out of reach.
Veena Jha, former Head of the UNCTAD India Office, stressed: “Trade reform must also integrate sustainability—without aligning trade with development and environmental goals, long-term prosperity will remain out of reach.”
Salomon Eheth, Ambassador of Cameroon to the WTO, stressed the need for building a stronger WTO “that delivers for developing countries and addresses food security, technology, and industrial diversification.” He promised to facilitate side events on these critical issues at Yaoundé during the 14th Ministerial in March, 2026.
Mehta reminded participants that the WTO cannot be sustained by rhetoric or confined to limited circles of debate. “We have to demystify the issues and speak to the common man about the benefits of the MTS”.
This sentiment was echoed by several speakers, who emphasized that optimism alone is not a strategy — reform must be urgent, practical, and inclusive. Panellists noted that decisions are not made in meeting rooms alone; they are ultimately shaped by political will and the active engagement of national capitals.
The idea of a “coalition of the willing” was described as a pragmatic approach to safeguarding the interests of developing countries, while advancing reforms that have a tangible impact on the lives of citizens and businesses. Without such progress, panellists warned, the WTO risks being seen as irrelevant by the global community.
In his welcome remarks, Pradeep S. Mehta Secretary General, CUTS International pointed out that even the intelligentsia feel that the WTO has become obsolete. He felt that we need a targeted campaign to demystify the multilateral trading system and explain its value to the ordinary people around the world.
Lamy was speaking as the keynote speaker at “The Roundtable: “WTO 2.0 Reforms Imperative” which was organised to take on board issues which can help revive the WTO. There were about 60 distinguished participants physically and a large number who watched the live stream.
Lamy’s statement can be viewed in the context of the US’s trade policy which has gone hay wire and does not respect the norms of non-discrimination and fairness to pursue rules-based trade among the 167 member countries of the WTO. It has been using tariffs, beyond the agreed norms, as ways of sanction against countries which are not following the US diktat.
Furthermore, it has not been paying up its membership fees for the last two years which has inconvenienced WTO’s operations. For instance, the annual WTO Public Forum held on 17-18 September has been shrunk from 4 days to 2 days.
Lamy highlighted three distinct challenges facing the trading system: In the short term, the challenge is U.S. protectionism, which has already weakened the WTO’s dispute settlement system.
In the medium term, the real test is geopolitical rivalry, particularly with China, which risks fragmenting the system into competing blocs.
In the long term, the shift in trade policy from protecting producers to protecting people—through measures on climate and risk—will redefine the very nature of global trade.”
The roundtable, on the urgent need for WTO reform, brought together ambassadors, trade officials, business leaders, civil society, and policymakers to chart a path for WTO reforms. Their collective message was clear: the stakes are high, the risks of inaction are severe, and the time for half-measures has passed. There were four women and six men on the balanced panel.
Participants issued a stark warning: without urgent reform of the WTO, exports from major economies could plummet by up to 40%.
The discussion, held ahead of the upcoming WTO Ministerial Conference-14 in Cameroon in March, 2026, underscored both the fragility of the multilateral trading system and the opportunities for bold, inclusive reform.
Speakers expressed concern over recent shifts in U.S. trade policy, noting that recurring protectionist measures have positioned Washington increasingly at odds with the multilateral trading framework.
Rajesh Aggarwal, former Indian trade negotiatordelivered the main address which highlighted the situation of the same and suggested several steps to take forward the WTO.
He cautioned that diminishing U.S. engagement risks weakening confidence in global trade rules and could contribute to further fragmentation of the international trading system.
In addition, he pointed out that “reform must balance fairness and credibility; without safeguards, developing countries risk carrying an unfair burden in the system.”
Aggarwal cautioned that a failure of the WTO could have severe repercussions for global supply chains, referencing economic models that project export declines of up to 40% for countries such as India. Valerie Picard, Head of Trade Policy at International Chamber of Commerce, concurred with these views, while emphasizing that “the private sector is ready to be a constructive partner in driving reform.”
Hamid Mamdouh former WTO Director, emphasised that it would be essential for MC14 to conclude with a reforms agenda, if not a reforms round.
Representatives from the private sector encouraged governments to overcome political impasses, offering their technical expertise in arbitration and dispute resolution to help advance meaningful reform.
Clare Kelly, Ambassador of New Zealand to the WTO, echoed the concerns of the private sector, underscoring the importance of enforcement mechanisms by stating that: “Enforcing commitments through a functioning dispute settlement system is vital for smaller economies—it is the backbone of trust in the WTO.”
The discussion on consensus-based decision-making revealed a range of perspectives. Some participants expressed concern that the practice, at times, enables more powerful members to stall progress, thereby reducing the system’s responsiveness.
Tan Hung Seng, Ambassador of Singapore to the WTO, said that we should banish two words from any future discussion i.e. consensus and lack of trust. The practice of consensus has been abused by certain powerful members stalling any progress. He stressed: “Consensus should not become a recipe for paralysis.”
James Baxter, Australia’s Ambassador to the WTO, endorsed these perspectives, emphasising that “consensus must deliver outcomes, not paralysis.” Baxter also stressed on the value of plurilaterals as the way forward to keep the WTO active.
Others highlighted the value of consensus as a cornerstone of legitimacy and inclusivity within the multilateral framework. For instance, Matthew Wilson, the Ambassador of Barbados to the UN and WTO, noted that removing the term consensus in decision-making “is like removing the term united from the United Nations.”
Wilson also highlighted that plurilaterals are the pragmatic alternative to the multilateral deadlock. He cautioned that while we must remain steadfast on the reform agenda, he wondered whether we have been looking at this issue through the wrong lens.
He stated that in the instances of the Investment Facilitation for Development Agreement and Fish Subsidies-2 accord, which have garnered wide support, there was major obstruction from some countries.
This divergence of views underscored the broader challenge of balancing efficiency with equity in global rulemaking.
A call for a “coalition of the willing” echoed throughout the session, reflecting growing momentum among reform-oriented WTO members. Rather than delaying action in pursuit of universal consensus, participants encouraged like-minded countries to take the lead at MC14—while keeping the process open and inclusive for others to join over time. This, according to the participants, could be a turning point — where reform is initiated not by all, but by those ready to move forward.
Panellists underscored that WTO reform should aim not only to stabilize global markets but also to contribute meaningfully to broader social and economic transformation.
Sofía Boza, Ambassador of Chile to the WTO, emphasized: “SMEs, women, and youth must be at the heart of trade reform, so that openness translates into inclusive development.” From the floor, Carolyn Deere-Birkbeck of TESS pointed out that while we discuss the reforms agenda for the MTS, we should not lose sight of the SDGs,
Sustainability was widely regarded as essential, with participants stressing that without aligning trade with development, equity and environmental objectives, long-term prosperity and stability remain out of reach.
Veena Jha, former Head of the UNCTAD India Office, stressed: “Trade reform must also integrate sustainability—without aligning trade with development and environmental goals, long-term prosperity will remain out of reach.”
Salomon Eheth, Ambassador of Cameroon to the WTO, stressed the need for building a stronger WTO “that delivers for developing countries and addresses food security, technology, and industrial diversification.” He promised to facilitate side events on these critical issues at Yaoundé during the 14th Ministerial in March, 2026.
Mehta reminded participants that the WTO cannot be sustained by rhetoric or confined to limited circles of debate. “We have to demystify the issues and speak to the common man about the benefits of the MTS”.
This sentiment was echoed by several speakers, who emphasized that optimism alone is not a strategy — reform must be urgent, practical, and inclusive. Panellists noted that decisions are not made in meeting rooms alone; they are ultimately shaped by political will and the active engagement of national capitals.
The idea of a “coalition of the willing” was described as a pragmatic approach to safeguarding the interests of developing countries, while advancing reforms that have a tangible impact on the lives of citizens and businesses. Without such progress, panellists warned, the WTO risks being seen as irrelevant by the global community.
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