Fox: The WTO could be facing an existential crisis – urgent and drastic action must be taken to protect it

“The WTO could be facing an existential crisis – urgent and drastic action must be taken to protect it 

Last weekend, I visited the Japanese city of Tsukuba to meet with trade ministers from other G20 countries.   

The agenda was focused on advancing discussions about how to overcome some of the greatest threats facing the global trading system.  

Whilst Geneva continues to provide the space for formal trade negotiations, last weekend’s meeting provided a forum for the biggest economies in the world to talk to each other about global trade tensions.    

All Ministers agreed to pursue a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment. We committed to keep our markets open.   

Every Minister agreed that action is necessary to improve the functioning of the WTO and we heard the business community’s calls for the G20 to continue supporting the multilateral trading system.   

But the statement agreed by Ministers, which inevitably reflects the consensual process by which the G20 operates, addresses neither the scale nor urgency of the challenges facing the global trading system. 

The WTO now faces one of the biggest tests since its establishment and, with all its functions under strain, it could become an existential crisis. 

So, the message from the UK is clear: urgent and drastic action must be taken to protect the global trading system as we know it. 

The WTO’s dispute settlement system is suffering huge challenges, including a stalemate in the appointment of Appellate Body members. We need an urgent, viable solution to this issue, and I urge all WTO members to continue to engage constructively in the ongoing discussions.  

The UK continues to lead the way in calling for a firm commitment from G20 members to reduce trade tensions and fight protectionism in all its forms.  

This includes supporting the trilateral work of the EU-US-Japan group seeking to strengthen the rules on industrial subsidies to ensure trade is fair and open, as well as prioritising work to solve issues like steel overcapacity together.  

Countries need to come together to respond to these issues through engagement at the WTO and not through unilateral action or tariff hikes.  

A WTO in crisis cannot bring the full benefits of prosperity to people around the world or help to support developing countries take advantage of the global trading system.  

So, it is imperative that, at its meeting of leaders later this month, the G20 seizes the opportunity to begin resolving trade tensions and ensure that the WTO that works for all members.  

With the global trade headwinds getting stronger and global growth slowing, action by G20 leaders will be sorely needed if we are to turn our anxieties into solutions that will protect the prosperity and wellbeing of all our citizens. 

If we do not identify the real threats to global prosperity and security and deal with them effectively, then who could blame our citizens for asking – what is the G20 for?”