World Trade Organization at a Crossroads: Reform or Irrelevance?

Countries are making headway in reforming the World Trade Organization (WTO), but a comprehensive deal is unlikely soon. Observers highlight the necessity for reforms to keep the 30-year-old trade watchdog relevant, while tensions rise over the consensus rule and Most Favoured Nation principle.

Efforts to reform the World Trade Organization are progressing, yet fall short of a comprehensive accord, according to a leaked document by Norway's WTO ambassador. The pressing need for reform is underscored by the deadlock caused by the organization's consensus decision-making rule.

In a document dated December 12, Petter Olberg, Norway's WTO ambassador, noted that a resolution on decision-making reforms is unlikely by the March 2026 ministerial meeting. However, he emphasized ongoing progress and urged ministers meeting in Yaounde, Cameroon, to create a forward-looking framework.

The United States criticized the stalled consensus system, warning it endangers the WTO's relevance as countries may seek alternatives outside the organization. A U.S. communication also proposed revisiting the Most Favoured Nation principle, underscoring the need for the WTO to modernize.

(With inputs from agencies.)