The ambassador in charge of the negotiations stated in a private memo that although nations are making strides toward revamping the World Trade Organization (WTO), they would not be able to reach an agreement at a significant conference early next year.
Reforms at the 30-year-old trade watchdog are desperately needed, according to observers, some of whom think the organization's future is in jeopardy.
The WTO refrained from commenting right away. For years, negotiations have been stalled by the consensus rule, which requires approval from all 166 members in order to approve new trade agreements, even those that have almost unanimous support.
In the letter obtained by Reuters on December 12, Norway's WTO ambassador Petter Olberg stated that the problem could not be settled at a ministerial conference in March 2026 due to the variety of suggestions for decision-making change.
He did, however, note that progress was being made and that ministers gathering in Yaounde, Cameroon, should decide on a framework to proceed.
In a message to members, the United States expressed dissatisfaction over obstacles in the consensus-based approach that prevented members from participating in plurilateral agreements.
With the opportunity for others to join at a later time, these agreements enable groups of interested persons to reach agreements among themselves.
It cautioned that this could lead nations to negotiate new agreements outside of the organization and endanger its survival.
In order to address one of the WTO's fundamental tenets, Most Favored Nation (MFN), which mandates that members treat others equally, the United States has called for reform talks.
It said that MFN was created for a time when open, market-oriented trade practices were required of trading partners. "That expectation was naive, and that era has passed," the statement stated.
"If the WTO does not reform by making tangible improvements in those areas that are central to its mission, it will continue its path toward irrelevancy," the United States stated in its letter. A diplomatic source warned that members did not generally endorse the U.S. stance.
"The United States' opinions on WTO reform differ greatly from those of the majority of its members and even contradict the organization's fundamental goals.
"There is no true multilateralism without MFN," the person told Reuters. According to WTO data, the percentage of international commerce carried out under the Most-Favored-Nation terms has decreased from roughly 80% to 72% since U.S. President Donald Trump started imposing higher import duties on the majority of trading partners this year. (Ed Osmond edited; Emma Farge and Olivia Le Poidevin reported.)
