By: Chris Southworth, Secretary General, ICC United Kingdom

There is no avoiding it: the failure of the WTO Ministerial Conference in Yaoundé, Cameroon to deliver concrete outcomes should serve as a clear warning. The WTO remains critical as the operating system of the global trading system. However, the alerts are flashing for an upgrade and reboot. The majority of governments are pressing the button, but a few are holding back.

We should have been coming home with a WTO reform and modernisation programme, two major plurilateral deals involving over 80% of the world (investment, digital trade) and an extended ban on taxing digital content over the border (Moratorium on Customs Duties on Electronic Transmissions). It was all on the table on the penultimate day and would have injected a welcome boost to business confidence at a time when it is urgently needed.

Instead, no concrete agreements were reached in Yaoundé, and negotiations will now continue in Geneva. The moratorium has lapsed, meaning governments may begin taxing digital content across borders, despite no agreed definition of what this is, nor any coherent implementation plan for it. The hard truth is that without reforming its decision-making process, the WTO will remain unable to achieve multilateral or plurilateral trade deals.

The impact of national and entrenched dogmatic positions was evident last week, particularly in the roles played by India and the US, where progress on workable deals was derailed in just 12 hours. For those not in the room, this reflects the current reality. These dynamics are unlikely to shift in the near term, even though the majority of WTO members remain pragmatic, open to compromise, and keen to move forward whether through plurilateral initiatives or broader reform of the WTO system.

It raises serious questions when those making decisions about the system avoid engagement or accountability to its users. In Yaoundé, industry was largely excluded from discussions, despite being willing to contribute practical solutions. Nor is it acceptable for a single country to block progress for 130 others. The effective “veto” created by the consensus principle is being used to stall positive initiatives, holding back broader progress across the system.

One positive takeaway was the leadership shown by 66 countries in moving ahead to implement the E-commerce Agreement (ECA). This is excellent news for digital trade and 21st-century commerce, so credit is due to this group. They have shown that progress is possible when there is leadership and determination. Let’s hope the larger investment facilitation group of 130 countries is inspired to follow a similar pathway.

So where does the WTO go next? I would strongly suggest that WTO members start with some serious self-reflection. Rule number one of change is that it begins with an ending. We need to draw a line under what has been happening and acknowledge it for what it is, so that progress can be made. WTO members are trying to move forward while carrying the baggage of the past and then wondering why progress is not happening. The answer is to leave that baggage behind and click ‘upgrade’. Reboot.

It would also be useful for those blocking progress to be reminded of the WTO’s purpose: raising living standards and driving prosperity for all. This includes paying attention to the real world, where people and small businesses are struggling with rising costs.

I am proud that we were there in force. We cannot be faulted for making our voice heard, not just for ourselves, but also for those who could not be present. We consistently advocated for progress. Even though the process was dominated by some with greater influence, we still made our case.

So where do we go now? For industry, the answer is to work where there is a shared willingness to move forward. While these discussions were taking place, the EU and CPTPP announced a trade partnership. The ECA group is a large bloc of like-minded countries advancing initiatives, and we should support them as well. Be pragmatic, go with the willing, and follow the action until the multilateral community can present a credible reform plan that includes a solution for how decisions are made. We are not short of ideas. What is needed now is the collective will to act, and to act with urgency.