WTO mulls deep reform as it faces 'new reality'

By AFP/Nina LARSON

The World Trade Organization chief called Wednesday for reforms to be sped up, as US President Donald Trump tramples on the body's fundamental principles with his slew of threatened and imposed tariffs.

"It seems to me an opportune time to launch some serious reflections on the system, with a view to seeing what works, what doesn't work, and how we reform it," WTO Director-General Ngozi Okonjo-Iweala told a meeting of the organisation's general council.

According to a statement citing her remarks, she acknowledged that the global trade body had been reflecting on a range of reforms for a while.

However, she said, it was now "time to elevate the level, depth and breadth of the reforms, to take a thorough look at the organisation and make sure it's really fit for 21st century global trade challenges".

A day earlier, she had urged the WTO's 166 members to keep "cool heads", and keep talking to one another "amid the current uncertainties".

Since returning to office on January 20, Trump has chosen tariffs as his main policy tool for lowering the massive US trade deficit.

At the beginning of February, he slapped additional customs duties of 10 percent on all products imported from China.

He is also threatening to impose 25 percent tariffs on all imported cars, and similar or higher duties on pharmaceuticals and semiconductors as he turns up the heat on some of the biggest US trading partners.

Trump also initially announced tariffs of 25 percent on all Canadian and Mexican imports, before U-turning just hours before they were due to come into effect, granting a one-month reprieve in principle until March 1.

And he signed executive orders last week imposing new 25 percent tariffs on steel and aluminium, due to come into effect on March 12.

'Not business as usual'

China has launched a complaint at the WTO against the Trump administration's actions, while Canada and Hong Kong have announced they will do the same.

But the WTO's mechanism for resolving disputes has been effectively paralysed since December 2019, due to the United States blocking the appointment of judges to the appellate body.

Washington accuses the Appellate Body of over-interpreting international trade rules and not respecting WTO deadlines for completing cases.

The United States also insists the body's decisions must not encroach on "national security".

In 2022, the WTO's members decided to hold discussions aimed at having a fully operational system up and running by 2024 -- but no agreement has yet been reached

"We are facing a new reality," Norwegian ambassador Petter Olberg, the outgoing chair of the WTO General Council, told Wednesday's gathering.

"We must all understand that some of our fundamental values and principles are being challenged," he said.

"It's not business as usual anymore for any of us. It's not the time for any of us to insist on old positions or speaking points. We must engage in real dialogue."