WTO reform urgently needed; adapting global trade rules for today's realities, says Norway’s WTO Ambassador

The WTO currently has 166 members. The global trade environment has changed in last three decades. Given this background, members agree that there are things in the WTO that work and should be preserved but it has become increasingly clear to most members that the WTO needs to change and adapt to today’s realities, Norway’s WTO Ambassador and facilitator for WTO reform Petter Ølberg tells ET's Dipanjan Roy Chaudhury.

The WTO faced structural and geopolitical obstacles even before Trump lost interest in the WTO. What can be a solution to address these obstacles?
The WTO currently has 166 members. This number is up and the composition has changed significantly since 1995. So has the global trade environment. Given this background, members agree that there are things in the WTO that work and should be preserved, for example, having a set of common rules, standards and a place to meet on trade issues. At the same time, it has become increasingly clear to most members that the WTO needs to change and adapt to today’s realities.


Many rules are insufficient or even outdated, dispute settlement is not fully functioning, many members are not getting the benefits from trade, and competition is regarded as unfair by many. Add to that the current geopolitical and geoeconomic turbulences and rules are being undermined by unilateral action and unfair practices. All of this leads to the same conclusion, which many agree with: the WTO must reform! It is urgent and existential for the organization!

What are areas in the WTO that need immediate reforms?
Since June 2025, members have engaged in a reform process. No one is against reform, and we have managed to identify some areas where there are challenges and reform is needed. These are, 1) Decision-making: Here no one challenges the practice of consensus. The problem, however, is that with a few exceptions we almost never seem to get results due to lack of consensus.

Hence, we need to discuss why and also look at ways to become more efficient, i.e. by considering having some flexibility in certain circumstances. 2) Development: Since two-thirds of the members are developing countries, it is no wonder that this features prominently. Development and trade are closely linked, and making sure it works for all members is vital. Here big challenges prevail, i.e. in making the special treatment for developing countries more effective. 3) Level playing field: Lack of fairness affects everyone – but in very different ways. Thus, members agree that we need to deal with this – even if there is no agreed upon definition of a level playing field. Improving transparency is a natural starting point. But it needs to go beyond that and look at compliance and ultimately maybe updating new rules, for example, on subsidies.

The WTO's dispute settlement system is impaired because the US has blocked appointments to the Appellate Body since 2016, leaving it unable to resolve appeals. What are your thoughts ?
Yes, that is a fact. For almost all members, having a fully and effectively functioning dispute settlement system is a top priority. Currently that is not the case since the Appellate Body is not operative. Members have been working on this for the last few years, but so far have not been able to break the impasse. Unfortunately, there is little hope of a breakthrough on this at MC14. However, efforts will continue to be made. And many members (61) have also found an alternative through the so-called Multi Party Interim Agreement (MPIA). This is a voluntary mechanism that those who have signed up for it can use. It essentially does the same thing as the Appellate Body does. More and more members view the MPIA as a pragmatic alternative as long as the Appellate Body is non-operational.

The current WTO rules are inadequate for addressing modern economic realities, including digital commerce, environmental standards, and industrial subsidies. What are your thoughts?
Yes, indeed. That is, in part, a consequence of the challenges we are facing with decision-making. Many are calling for the WTO to start dealing with these and other issues. I hope the reform process can help unlock some of this as well, so that the WTO can properly address the challenges of our time – at least in the areas where the WTO is relevant.