context: Beijing sees greater participation in the multilateral WTO (World Trade Organisation) as a counterweight to unilateralism, protectionism and weaponisation of trade matters by some Western countries. Recognising their common interests, the PRC is seeking greater unity with the 'Global South' to advance their collective platform. The consensus-based approach in the WTO makes it difficult for progress to be made for the whole membership. Expect Beijing to champion more bloc-based and regional efforts (i.e. plurilateral agreements).
Western countries like the US are cherrypicking WTO (World Trade Organisation) rules that work for themselves, paralysing the dispute settlement mechanism and undermining the authority and effectiveness of the organisation, argues Zhang Jianping 张建平 MofCOM (Ministry of Commerce) Research Institute Academic Committee vice chair.
Absent any response on this front, the WTO will lose its guiding role in global trade and rules-setting, adds Zhang, noting that Global South countries should play a more active role in defending their interests and the rules-based multilateral trading system.
Zhang proposes three recommendations for how the Global South can promote WTO reform
- strengthen negotiating power through solidarity
- the Global South should unify its stance on major topics
- safeguard multilateralism and the consensus-based principle
- urge developed countries to abide by WTO rules and fulfil their promises
- promote the normal operation of the WTO dispute resolution mechanism and the resolution of international trade disputes under its framework
- the Global South should unify its stance on major topics
- uphold and defend the preferential treatment of developing countries by the WTO
- push WTO reform towards a more just, reasonable and inclusive direction
- actively participate in negotiations on new issues such as e-commerce, investment facilitation, environment and climate change
- reach more consensus and agreements
- ensure the openness to plurilateral agreements (deals binding only on those members that accept it)
- defend the applicability of the 'most favoured nation' status
- take the initiative in digital and green trade
- push the WTO to formulate rules to promote the development and dispute resolution of digital and green trade
- address the associated security risks and threats while maintaining openness and inclusiveness
- push the WTO to formulate rules to promote the development and dispute resolution of digital and green trade