Many topics were on the agenda at the 13th Ministerial Conference of the World Trade Organisation (WTO) in Abu Dhabi, in particular agriculture and fisheries subsidies as well as the WTO's blocked dispute settlement mechanism. However, after five days of sluggish negotiations, agreement was only just reached on the extension of duty-free online trade (e-commerce). The 164 WTO member states did not even commit to continuing the negotiations. The failure of the conference is primarily due to differences of interest between countries of the Global North and Global South.

WTO showed weaknesses right from the start
The WTO was founded after seven years of negotiations as part of the Uruguay Round and came into force in 1995. Austria and the EU have been members from the start. The fundamental aim of the WTO is to promote a rules-based world trade, yet it has no mandate on social issues or environmental sustainability. The liberalisation of trade has further cemented imbalances between countries and social inequalities in many places.

It is therefore not surprising that the WTO has been in crisis since the Doha Round in 2001. Negotiating points at that time relating to tariffs in the agricultural sector or intellectual property rights (TRIPS) have still not been finalised. In addition, the USA has continued its long-standing blockade by refusing to appoint the necessary members to the WTO's Appellate Body since 2019.

Global trading system in trouble
At the 13th Ministerial Conference, dissatisfaction was once again evident, particularly on the part of countries from the Global South. It was primarily these countries, above all India, that blocked agreements. This corresponds to the emerging trend of an increasingly self-confident bloc of countries from the Global South, which is in the spirit of an old demand for a New International Economic Order. The agricultural subsidies of the Global North are perceived as unfair by some trading partners, as countries such as India, for example, are prevented from increasing tariffs on the import of agricultural products with reference to free trade.

The WTO should indeed finally move towards supporting an upturn in the countries of the Global South. The development of local value chains requires exceptions in the WTO rules that allow the strengthening of agricultural, industrial and general economic structures. AK and ÖGB are calling for a sustainable expansion of development aid.

Structural and social weaknesses of the WTO
In addition to the imbalances between countries, there is also increasing precarisation in the world of work and a consolidation of inequalities globally. If the WTO wants to ensure that global trade benefits everyone as much as possible, it must finally take greater account of its impact on the environment and social rights - especially labour rights. However, its structural weakness is also an obstacle here, as trade unions and civil society organisations are excluded from the negotiations. At this year's conference, organisations continued to be restricted and excluded.

In order to tackle global poverty, a joint body of the WTO, involving civil society and trade unions in particular is necessary. In addition, the International Labour Organization (ILO) must finally be given WTO observer status and all ILO core labour standards should be included in the list of general exceptions. Trade union rights, a ban on discrimination against women and a ban on child labour must therefore be enshrined in the WTO agreements as key components of a social clause that can be sanctioned.

Environmental crisis requires a Climate Peace Clause
Although the close connection between trade and emissions and the destruction of the environment is obvious, the environmental and climate crisis is not mentioned at all in the current final declaration of the Ministerial Conference. Past WTO dispute settlement proceedings have foiled parts of environmental agreements that have an impact on international trade and enforced the primacy of WTO law over international environmental law. However, the WTO must no longer block measures for socio-ecological transformation. Instead, measures to reduce emissions must be excluded from the dispute settlement mechanism and an environmental and climate Peace Clause must be enshrined in the WTO agreements.

Public interests must be legally protected
The neoliberal zeitgeist during the establishment of the General Agreement on Trade in Services (GATS) also meant that the welfare state's room for manoeuvre in the area of public services is only inadequately secured. The global liberalisation trends in the areas of health, data protection, transport, water supply and social services must be decisively counteracted. Public services must be excluded from trade agreements with legal certainty. In addition to implementing a social and climate clause, the reform of the WTO should also close the existing loopholes in the GATS rules. 

Further information:
AK EUROPA: 13. WTO Ministerial Conference in Abu Dhabi  
Ö1 Punkt Eins: Welthandel in der Sackgasse? (World trade at an impasse) (German only)
AK EUROPA: TRIPS Waiver is a long time coming
AK EUROPA: Trade policy outlook for 2023
AK EUROPA: Online trade: Chamber of Labour demands protection of data and privacy