Global trade reform efforts faced a setback at the 14th World Trade Organization (WTO) Ministerial Conference in Yaoundé, Cameroon, as members failed to reach consensus on key proposals to modernise the multilateral trading system and extend a long-standing moratorium on tariffs for digital trade. However, New Zealand Trade and Investment Minister Todd McClay, who served as Vice Chair at the conference, said meaningful progress had been made—particularly in advancing a major plurilateral agreement on electronic commerce covering a substantial share of global trade. Reform Stalemate Highlights Deep Divisions Despite broad recognition of the need for reform, WTO members were unable to finalise agreements on two critical fronts: Modernisation of WTO rules and processes Extension of the WTO-wide ban on tariffs on digital trade flows ‘Disappointingly, we could not secure agreement in time,’ McClay said. ‘But there is clear consensus that the WTO must evolve to remain relevant in a rapidly changing global economy.’ The failure to renew the digital trade tariff moratorium at a multilateral level raises concerns among businesses and policymakers about potential fragmentation in global digital commerce rules. Breakthrough on Electronic Commerce Agreement In contrast, a coalition of 66 WTO members, representing approximately 70% of global trade, agreed to advance implementation of a new Electronic Commerce Agreement—a significant development for digital trade governance. The agreement underpins an estimated US$159 billion in trade and includes provisions aimed at: Ensuring predictable digital trade rules Preventing tariffs on electronic transmissions among participating members Supporting cross-border data flows and digital services trade ‘This is a major win for exporters and small businesses,’ McClay said. ‘It provides certainty in a space where rules have often lagged behind technological change.’ For New Zealand, where digital services and e-commerce are increasingly important export channels, the agreement is expected to enhance market access and reduce regulatory uncertainty. Strategic Diplomacy Across Major Economies On the sidelines of the conference, McClay held bilateral meetings with representatives from 17 countries, including major economic powers such as: United States China India European Union United Arab Emirates Saudi Arabia These engagements focused on strengthening trade relationships, addressing supply chain resilience, and advancing New Zealand’s broader trade agenda. Fuel Supply Security in Focus Amid ongoing global energy uncertainties, McClay also used the opportunity to discuss fuel supply chain resilience with key partners, including Singapore, South Korea, Saudi Arabia, and Malaysia. While New Zealand’s domestic fuel supplies remain stable, officials are increasingly prioritising diversification and security of supply in response to geopolitical risks and market volatility. Ongoing Push on Subsidy Reform New Zealand continues to advocate for reforms targeting fisheries and agricultural subsidies, which it argues distort global markets and disadvantage efficient producers. ‘These subsidies reduce returns for our exporters and undermine fair competition,’ McClay said. Progress in these areas remains complex, with negotiations often hindered by competing national interests and development priorities. Next Steps: Geneva Negotiations With a final agreement package still within reach, attention now shifts to Geneva-based negotiations, where WTO members will attempt to bridge remaining gaps. ‘Securing these outcomes will now be the priority,’ McClay said, signalling New Zealand’s continued commitment to multilateral trade reform. Bipartisan Representation The New Zealand delegation also included Labour Party Trade and Export Growth spokesperson Damien O’Connor, reflecting a degree of bipartisan alignment on the importance of international trade engagement. Global Trade at a Crossroads The mixed outcomes from the conference underscore the challenges facing the WTO as it seeks to adapt to: The rise of digital trade Increasing geopolitical tensions Diverging economic priorities among member states While multilateral consensus remains elusive, smaller group agreements—such as the Electronic Commerce Agreement—are emerging as pragmatic pathways
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