Swiss economics minister fears WTO marginalisation without reform

KEYSTONE/© KEYSTONE / MARTIAL TREZZINI

Trade policy will increasingly be conducted outside the World Trade Organization (WTO), Guy Parmelin said on Monday.

To remain relevant the institution “must reform itself”, said Parmelin in a video message at the start of the ministerial meeting in Abu Dhabi. In his view, it was important not to reinvent but to “strengthen and develop the existing system”.

The reform of the WTO will be one of the central issues at this 13th ministerial meeting. Although no decisions will be taken in the United Arab Emirates, the 164 members must try to make progress on this issue. The organisation’s appeals tribunal has been dysfunctional for five years due to an blockage by the United States.

At the Geneva ministerial two years ago, the members undertook to find a solution by the end of this year. Switzerland wants reform, especially as Washington has appealed in the arbitration over the additional tariffs launched by former President Donald Trump, while Bern has won the case.

A functioning dispute settlement system is a “key element”, according to Parmelin who heads the Federal Department of Economic Affairs, Research and Education. For Switzerland, reform still means opening up to new issues, such as trade and the environment.

Swiss commitment

In Abu Dhabi, a discussion was scheduled for Monday afternoon with the ministers to see whether any measures could be launched at a later date. The Swiss delegation is led by State Secretary Helene Budliger Artieda for this ministerial meeting.

The WTO must “show how trade can contribute to solving environmental and climate problems”, insisted Parmelin. In his view, the same applies to the adoption by all members of the plurilateral agreements on investment facilitation for developing countries and on electronic commerce.

The food crisis should also be addressed by the WTO, otherwise it will be dealt with elsewhere if it is not taken up, said Parmelin. Switzerland promises to work towards consensus even when its important interests are threatened, he added.

Translated from French by DeepL/ac

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