Elizabeth Morgan | Amid tariff chaos, the WTO continues working

ON AUGUST 7, another round of Trump tariffs came into effect completely outside the rules of the World Trade Organization (WTO). This time, the tariffs on most CARICOM countries, it appears, remains at 10 per cent and was set at 15 per cent on Trinidad and Tobago and Guyana. So, the 38 per cent reciprocal tariff on Guyana was reduced. Varying tariffs have been imposed on other countries, a few through negotiations and others imposed for political reasons.

As this chaotic US tariff saga continues to unfold, there are quite a few analysts writing off the WTO as a spent force.

It is seen, however, that the WTO continues to function. The 14th Ministerial Conference (MC14) is still on track to be held in Cameroon in March 2026.

In July, the WTO Trade Negotiations Committee (TNC) and General Council held their last meetings before the summer recess.

THE TRADE NEGOTIATIONS COMMITTEE

As TNC Chair, the Director General, NgoziOkonjo-Iweala, who starts her second term in the post on September 1, noted at the TNC’s July 15 meeting that despite rising trade measures, 74 per cent of global goods trade still flows under WTO rules, the Most Favoured Nation Principle. She further noted that in today’s climate of record trade policy uncertainty, safeguarding the stability and predictability provided by the WTO has never been more urgent.

The subjects under negotiations include: fisheries subsidies, agriculture, trade and development, the multilateral register for wines and spirits, and services. The reports provided at the meeting by the chairs of these negotiating groups indicate that there is much work to be done to achieve consensus in the ongoing negotiations. Of course, we must recall that decisions are taken at the WTO by consensus. Regarding the Agreement on Fisheries Subsidies, the focus is on its entry into force and implementation.

THE GENERAL COUNCIL (GC)

The GC meeting was held on July 22-23. It is interesting to note that the US has been participating in these meetings. Some of the items on the council agenda included:

• Incorporation of the Investment Facilitation for Development Agreement into the WTO Agreement,

• Follow-up to outcomes of ministerial conferences,

• WTO reform,

• Work programme on electronic commerce (facilitator – Jamaica),

• Respecting the rules-based multilateral trading system (requested by Brazil),

• Member conversations on current economic issues (requested by Canada), and

• Follow-up to the WTO retreat on Sustainable Agriculture in the Multilateral Trading System (requested by Brazil).

WTO REFORM

It is reported that discussions focused on WTO reform which is supported by the European Union (EU) and friends. The EU representative referred to reform as a challenging and critical process for the organisation and believed that all issues should be on the table. The three tracks of reform are governance, fairness, and the future. Very controversial issues on the reform agenda include consensus-based decision-making and special and differential treatment for developing countries.

It is reported that Jamaica, speaking on behalf of CARICOM, pointed out that opportunities for establishing a coherent, inclusive and development-oriented reform agenda appeared to be narrowing. The representative pointed to the urgent need to overhaul the dispute settlement system to enforce the transparency of rules and procedures, to ensure that members scrupulously respect their commitments, and to ensure predictability and adaptability of the multilateral trading system to the challenges and issues of today’s world. CARICOM representatives want consensus-based decision-making to be respected.

The USA did participate in these discussions acknowledging the need for reform.

The Work Programme on Electronic Commerce, for which the representative of Jamaica is the facilitator, examines all trade-related issues arising from e-commerce including development issues. The moratorium agreed continues the practice of not imposing customs duties on electronic transmissions until MC14.

So, with the USA implementing a policy of protectionism and with great uncertainty in the international trading system, the WTO continued to work. As the director general pointed out, most of its 166 members are trading under WTO rules. On resumption in September, members will begin to look more intensely at preparations for MC14 and possible outcomes, recognising that these, indeed, are challenging and uncertain times.

Elizabeth Morgan is a specialist in International trade policy and international politics. Send feedback to columns@gleanerjm.com