The WTO in crisis after the failure of negotiations on agriculture and fisheries
Despite prolonged one-day discussions, the ministers representing the 164 members of the World Trade Organization, meeting in Abu Dhabi, left this Friday March 1 with an admission of failure.
Two issues in particular, fishing and agriculture, revealed the deep divisions between member countries.
Delegates pose for a family photo during the 13th WTO Ministerial Conference in Abu Dhabi, United Arab Emirates, February 26, 2024. © Abdel Hadi Ramahi/Reuters
By: RFI with AFP
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The ministerial meeting of
the World Trade Organization
ended on Friday March 1 with an acknowledgment of failure on the major issues of fishing and agriculture and a half-hearted rescue of the electronic moratorium, plunging the organization in the unknown.
The results of the ministerial meeting highlighted the deep divisions between the 164 members of the WTO, “
in an international context marked by greater uncertainty than ever
”, noted Ngozi Okonjo-Iweala, director of the WTO, pointing to geopolitical tensions, economic concerns and elections in many countries.
Agreements are also difficult to find because decisions are made by consensus.
“
The beauty of the WTO is that each member has an equal voice, but this also comes at a cost
,” she stressed.
The only progress of these five days of negotiations concerns
electronic commerce
, exempt from customs duties since 1998. India agreed at the last minute not to veto the extension of the customs moratorium on electronic transmissions, but for two years at most, i.e. until 2026. Indian Commerce Minister Piyush Goyal explained that his country had decided to lift its objection "
out of respect
" for Thani al-Zeyoudi, the president of this conference, describing him as "
good friend
".
Negotiations that collapsed
It is a drop in the glass of multilateralism, which even if we were very optimistic, we would struggle to describe as half full.
The objective in Abu Dhabi was to establish new rules on fishing subsidies to avoid overfishing and the threats it poses to marine populations.
The debates focused on the flexibility granted to developing countries, and came up against demands from India considered too great.
The negotiations collapsed on agriculture and in particular the question of food stocks.
While Europe and India are being crossed by farmers' demonstrations, the subject was decidedly too sensitive.
“
Agriculture is once again the subject that makes or breaks a ministerial conference
,” warned the European Commissioner for Agriculture, Janusz Wojciechowski on the X network. The agricultural negotiations stumbled on India's agricultural demands , a key player in the negotiations at each ministerial meeting.
Agriculture is again the topic that makes or breaks a Ministerial Conference.
Outcomes are uncertain until the last hours of the Ministerial Conference.
I have been and will continue to be extremely vigilant as regards the issue of agricultural.#MC13AbuDhabi pic.twitter.com/rDY5jfXVBG
— Janusz Wojciechowski (@jwojc) February 29, 2024
On fishing, the countries were notably unable to agree on the transition period granted to developing countries, with the countries believing that India was asking for too many years.
“
Several States have expressed radical positions in favor of their interests alone and have not made it possible to move towards a satisfactory compromise
,” reacted the French Minister of Ecological Transition, Christophe Béchu, in a press release.
A weakened institution
This new failure, while the mechanism supposed to allow the settlement of disputes between member countries has itself been blocked since 2019 by
the United States
, further weakens an institution which operates by consensus.
“
Perhaps the WTO needed a good crisis and perhaps this one will make us realize that we cannot continue like this
,” said a senior European official, who fears that trade will be “
increasingly characterized by power relations
.
“
Even if electronic commerce is saved, we can speak of a crisis at the WTO
,” added a source close to the discussions.
“
If we can speak of a crisis, it is because the consensus, which was the cement of this organization, has become the mud in which it is bogged down
,” reacted Richard Ouellet, of Laval University in Canada , present in Abu Dhabi.
For John Denton, secretary general of the International Chamber of Commerce, “
the unexpected weakness of the overall package of results should, however, serve as a warning signal
”.
As with every ministerial, the pressure was strong for the WTO to show results.
This year expectations were particularly high in the face of the possible return to the White House of Donald Trump, who did everything to torpedo the organization during his first term.
The previous meeting in 2022
in Geneva ended with some success, with agreements on the ban on subsidies for illegal fishing and on patents for anti-Covid vaccines.
A “
miracle
” that Ngozi Okonjo-Iweala had called for to be reproduced.
While her mandate ends next year, it remains to be seen whether she will still be present at the next ministerial meeting which is to be held in Cameroon on a date still undetermined.
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