Analysis: Plurilateral Agreements and the future of WTO Trade Negotiations

Plurilateral agreements allow smaller groups of WTO members to move ahead with creating new trade rules.

Isaac Ouro-Nimini Hansen Trade Policy Adviser

The WTO is widely seen as being in crisis, with multilateral trade negotiations largely stalled. This analysis explores whether plurilateral agreements could help move trade rulemaking forward.

What are the main challenges facing the WTO today?

The WTO is facing many challenges, perhaps chief among them that WTO members have been unable to agree on new trade rules to meet the needs of a changing global economy.

Multilateral agreements – agreements negotiated and adopted by all WTO members – have traditionally been the main way of developing new global trade rules. The problem is that it has become increasingly difficult to reach the required consensus among 166 members with diverse interests and priorities.

The analysis focuses on plurilateral agreements as a way forward. What exactly are plurilateral agreements?

Plurilateral agreements offer an alternative approach, allowing smaller groups of WTO members to move ahead with new trade rules. By negotiating in smaller, self-selected groups, interested members can move more quickly and focus on areas where there is already a shared interest in developing new commitments.

A common concern with plurilateral agreements is that developing countries may be left behind. How can plurilateral agreements remain inclusive?

We offer a number of recommendations for how plurilateral agreements can be designed to be inclusive. With greater transparency, clear accession pathways, and a built-in focus on development issues and technical assistance, more WTO members from developing countries would have the capacity and information to assess whether joining plurilateral negotiations would benefit their economic development.

If WTO members want the organisation to remain relevant, what is the single most important step?

The most important step would be to embrace plurilaterals as a legitimate complement to multilateral processes. The upcoming 14th WTO Ministerial Conference offers an excellent opportunity for members to reaffirm multilateralism by embracing plurilateralism.