The WTO - A System Built for Yesterday Cannot Govern Tomorrow’s Trade
Talal Abu-Ghazaleh
The WTO now stands at a decisive moment. During my years serving on its expert panel and advising governments on the evolution of the global trading system, I saw how it helped create stability and predictability in world commerce. Yet the world for which it was created has now changed in profound ways. New economic powers have risen, geopolitical rivalry has intensified, supply chains have fragmented, and now digital trade and AI are reshaping the very nature of commerce. The question is no longer whether the WTO has a role in this new reality. The question is how it can adapt to an economy that bears little resemblance to the one that existed in 1995 when it was founded.
The recent discussion at the WTO Public Forum 2026 on the future of the organization revealed differences in emphasis but also a shared recognition that the system must evolve. The United States argued that the organization should be judged by its ability to deliver practical outcomes. It noted that the experience of recent decades has shown the limits of relying on one institution to produce comprehensive rules for all members. It stressed the value of committee work, transparency and monitoring, calling for deeper engagement with the private sector and a more focused Secretariat.
The European Union offered a broader vision. It believes the organization should continue to anchor the multilateral trading system. Anchoring the system does not mean preserving the status quo. The EU sees a need for reform in response to changes in economic power and the growing use of industrial policy. Existing rules on subsidies and state owned enterprises may no longer reflect today’s competitive environment.
The development dimension added another essential layer. India stressed that reform must preserve policy space for industrialization, food security and structural transformation. For developing countries, trade is not only about market access. It is also about creating the conditions under which economies can diversify.
Digital trade illustrated both the potential and the limitations of the system. Technology is transforming commerce at a pace that existing rules cannot match. Cooperation may offer a pragmatic route forward, provided it does not fragment the organization.
In my opinion the path ahead is gradual. It must work to strengthen transparency, restore dispute settlement and deliver concrete results. The WTO remains vital in global trade, but its relevance at this time must be earned through adaptation to a world that has changed since its formation.