WTO OVERHAUL TARGETS FAIRER TRADE, MORE FLEXIBLE DECISION-MAKING TO END PARALYSIS
The World Trade Organization (WTO) is undergoing a major overhaul aimed at making global trade rules fairer and more adaptable, as part of a broader effort to revive its credibility and end years of decision-making paralysis. With growing economic nationalism, supply chain disruptions, and increased geopolitical tensions, the WTO’s reform drive has become increasingly urgent for both developed and developing nations.
At the heart of the overhaul is a push to modernize the WTO’s consensus-based decision-making system, which critics say has hindered progress and allowed a few members to block key reforms. The organization’s 164 member states must currently agree unanimously on major decisions — a model that often leads to gridlock. Under the new proposals, the WTO aims to adopt more flexible frameworks that allow agreements to move forward even without full consensus, especially in less politically sensitive areas like digital trade, climate-linked subsidies, and services.
WTO Director-General Ngozi Okonjo-Iweala has been a vocal advocate of reform, arguing that the organization must evolve or risk irrelevance. “We cannot afford to be paralyzed while the world changes around us,” she said during a recent meeting in Geneva. “This overhaul is about making trade rules more inclusive, more equitable, and more responsive to modern realities.”
One key reform area is dispute resolution. The WTO’s Appellate Body — once the core mechanism for resolving trade conflicts — has been non-functional since 2019 due to a U.S. block on judicial appointments. Without a functioning dispute system, trade disagreements among countries have grown more contentious and less regulated. The reform package seeks to restore the Appellate Body by 2025 with new procedures that address transparency, timelines, and impartiality — changes designed to win back support from skeptical members, especially the United States.
Another important component of the overhaul is support for developing countries. The WTO is working to ensure that trade rules do not disproportionately benefit wealthier nations. Measures under discussion include allowing longer implementation timelines for developing economies, targeted aid for capacity-building, and clearer rules around agricultural subsidies that disadvantage small-scale farmers in the Global South.
The overhaul also embraces contemporary issues that the WTO has historically struggled to address — such as climate change, digital trade, and public health. Proposals include trade incentives for low-carbon production, streamlined rules for cross-border digital services, and mechanisms to ensure equitable access to essential medical goods in future pandemics.
Despite the ambitious agenda, the reform process faces significant hurdles. Major economic powers have divergent interests, and political tensions — including U.S.-China trade friction and the fallout from Russia’s invasion of Ukraine — complicate negotiations. Still, there is cautious optimism. Recent progress on fisheries subsidies and e-commerce rules demonstrates that consensus is possible when there is political will.
In a global economy facing fragmentation and rising protectionism, the WTO’s overhaul is seen as a critical step toward restoring trust in multilateral trade. If successful, it could pave the way for a more balanced and effective global trading system — one that reflects the complexities of the 21st century while ensuring fair opportunities for all nations.