World Trade At Crossroads: WTO Fails To Deliver As Members Clash Over Key Issues

World Trade Organization's ministerial meeting in Yaounde ended without major agreements, highlighting growing divisions in global trade. Talks failed on key issues like agriculture and e-commerce and long-standing duty-free rule on digital trade expired. Experts say rising tensions and lack of consensus among member countries are weakening WTO.

The World Trade Organization (WTO) has ended its 14th ministerial conference in Yaounde without reaching key agreements, raising fresh concerns about the future of global trade. The high-level meeting, which was expected to bring progress on important issues, instead ended in confusion and delay. Talks stretched beyond the planned closing time on Sunday and finally wrapped up in the early hours of Monday with no major results.

Key issues remain unresolved

The biggest disappointment was the failure to reach agreements on agriculture and reforms within the WTO. These are areas that many member countries consider urgent.

Another major setback was the expiry of a long-standing rule that had allowed digital goods to move across borders without customs duties. This rule, in place since 1998, covered items like e-books, music and online services.

Its expiry now creates uncertainty for global digital trade.

Meeting marked by confusion and delays

Observers described the meeting as chaotic. The NGO network “Our World Is Not For Sale” said the talks ended in “chaos and confusion”. Delegates present at the venue in Yaounde also expressed frustration. Many were confused by repeated delays and last-minute changes in meeting schedules.

Even countries not directly involved in key negotiations found it difficult to follow the progress of discussions.

WTO faces growing challenges

Experts say the outcome reflects deeper problems within the WTO. The organisation works on a rule that requires all decisions to be agreed upon by every member country.

While this system ensures fairness, it also makes it very hard to reach decisions, especially when countries have different interests.

The WTO is also dealing with a weakened dispute settlement system and rising tensions between major economies.

Experts warn of ‘harsh reality’

Several experts have pointed out that the lack of agreement shows a bigger issue — the world is moving away from unified global trade rules. Laurence Boisson de Chazournes, an international economic law expert, said the consensus system is being misused.

Former WTO official Hamid Mamdouh said the situation shows that member countries no longer share the same goals. He added that it may be better to have no agreement than a weak one that hides the real problems.

He described the situation as a “harsh reality” for the global trading system.

Differences over digital trade

One of the most debated issues was the e-commerce moratorium. This rule had stopped countries from charging taxes on digital goods.

Developed countries, including the United States, wanted the rule to continue permanently. However, many developing countries, including India, opposed this idea.

They fear losing important tax revenue if digital goods remain duty-free.

At one point, the United States and India seemed close to a compromise to extend the rule for five years. But the deal collapsed when Brazil objected at the last moment.

Brazil said it was unhappy with the lack of progress on agriculture and blocked the agreement.

Tensions between major powers

The meeting also showed clear tensions between major global powers. Observers criticised the United States for taking a strict position and not showing enough willingness to compromise.

At the same time, countries like China continued to push their interests more quietly.

Experts said many smaller countries were left trying to protect their own interests in this complex situation.

Routine work continues despite setback

Despite the failed talks, the WTO continues to function in some areas. It still monitors trade and ensures that existing agreements are followed.

More than 70 percent of global trade still takes place under WTO rules.

However, experts warn that without strong agreements, the organisation’s role could weaken over time.

No return to old system

The outcome of the Yaounde meeting has made one thing clear — global trade is changing. Experts say there is no going back to the old system where countries worked together easily.

Instead, the world is moving towards a more divided trade environment, where countries focus more on their own interests.

The WTO now faces the challenge of adapting to this new reality if it wants to remain relevant.

(With AFP inputs)