The WTO cannot keep calling delay a result

The close of the WTO’s MC14 should be seen for what it is: not even a respectable near-miss, but another warning that the institution’s decision-making machinery is no longer equal to the demands of modern trade. The language of diplomacy will call this unfinished business.

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The WTO does not need more carefully worded postponements.

The close of the World Trade Organization’s (WTO) 14th Ministerial Conference in Yaoundé, Cameroon, should be seen for what it is: not a diplomatic success, not even a respectable near-miss, but another warning that the institution’s decision-making machinery is no longer equal to the demands of modern trade.

The conference ended without agreement on extending the longstanding global moratorium on customs duties on electronic transmissions, and without adoption of a reform work plan. Both questions were pushed back to Geneva. In the meantime, the moratorium expired.

This matters because the issue is larger than digital tariffs. The real story is institutional incapacity. Once again, the WTO gathered ministers, elevated expectations, and then failed to produce decisions on matters it knew in advance would test its relevance. The organization continues to demonstrate that it can assemble, deliberate, and defer. What it too often cannot do is conclude.

There will be those who argue that the setback is merely temporary, that the talks ran long, that the differences were narrow, that the political will remains intact.

But this defense no longer persuades. “Running out of time” has become the polite diplomatic phrase for a deeper structural failure. Institutions reveal their health not by the elegance of their declarations, but by their ability to make decisions when decisions are required. On that test, Yaoundé was another disappointment.

It is especially troubling that the WTO’s consensus rule, long defended as a source of legitimacy and inclusiveness for its decisions, increasingly functions as an instrument of its paralysis. Consensus has virtues in principle. In practice, however, it now too often allows a small number of members to block outcomes sought by a broad majority. That may preserve procedural purity, but it drains the body’s substantive credibility. A multilateral institution cannot claim relevance in a fast-moving global economy if its operating model permits chronic indecision on issues central to the future of trade.

This does not mean the WTO is without value. It remains important precisely because the world still needs a rules-based framework for trade, especially at a time of heightened geopolitical rivalry, industrial policy conflict, and strategic fragmentation. But importance alone is not enough. An institution may be necessary and still be failing. That is the uncomfortable truth now facing the WTO. Even its own leadership has acknowledged that the multilateral order has fundamentally changed and that reform is needed. Yet acknowledging the problem is not the same as solving it.

So how should this outcome be described? Not as a total collapse. Not as a complete irrelevance. But certainly, as a serious failure of governance. It is another example of kicking difficult decisions down the road, another example of procedural caution displacing institutional courage, and another example of how consensus, as currently practiced, can become a veto on modernization.

The language of diplomacy will call this unfinished business. The language of honesty should call it something else: drift.

The WTO does not need more carefully worded postponements. It needs a governing culture that can distinguish between patience and avoidance, between inclusion and immobilism, between consensus and surrender. Until it does, every WTO ministerial conference that ends by sending an ever-growing list of unresolved issues back to Geneva will reinforce the same conclusion: the organization is not yet beyond repair, but it is becoming dangerously adept at managing decline.

That should concern everyone who still believes that open, rules-based, and mutually beneficial trade is worth defending.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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