Russia calls for WTO reform rather than replacement

10:57

By: Azzat Manal

Russia calls for WTO reform rather than replacement

Russia has called for the World Trade Organization to modernize its rules and procedures rather than being replaced, highlighting divisions over the future of the global trading system during a G20 ministerial meeting in Milwaukee.

Russian Economic Development Minister Maxim Reshetnikov said the WTO's framework needs to adapt to changing economic conditions as economies evolve and global trade becomes more complex. Speaking to reporters after the G20 trade ministers' meeting, he argued that the organization's mechanisms should be developed rather than abolished or replaced.

Reshetnikov said reforms should include faster procedures and a review of existing commitments, while addressing differences between countries that helped establish the WTO and those that joined the organization later. He also argued for more consistent rules and mechanisms to prevent the global trading system from shifting away from rules-based commerce toward a system driven primarily by economic power.

The comments came as G20 trade ministers met in Milwaukee on September 30 and October 1 under the US presidency of the group. The United States had placed structural excess industrial capacity, forced labor in supply chains, the most-favored-nation principle and the use of food as a trade tool among the main issues for discussion.

The meeting exposed differences among G20 members over how to address some of the most contentious trade issues. Ministers failed to reach consensus on structural excess industrial capacity and forced labor in supply chains, although they agreed to condemn the use of food as a coercive trade instrument, according to US Trade Representative Jamieson Greer.

Greer has also questioned whether the existing multilateral trading framework is capable of dealing effectively with current challenges. Washington has increasingly emphasized bilateral agreements, tariffs and direct negotiations as tools for addressing trade imbalances and protecting domestic industries, while the WTO remains the main institution responsible for setting and overseeing global trade rules.

Reshetnikov pointed to the 2008-2009 global financial crisis as an example of G20 cooperation, arguing that major economies were able to overcome differences and coordinate their responses at a time of severe economic uncertainty. In his view, maintaining common rules remains important to prevent the fragmentation of international markets.

The debate comes as governments face growing pressure to balance national industrial policies with the need for predictable international trade. Disputes over tariffs, industrial overcapacity, supply chains and market access have increasingly complicated efforts to maintain consensus within the multilateral trading system.

The Milwaukee meeting therefore underscored a broader disagreement over the future of global trade governance: Russia is advocating an updated WTO framework, while the United States is pressing for changes to the way major trade disputes are addressed and has expressed skepticism about relying on the WTO for solutions.