The 167-country organisation was already in a sorry state with its negotiating arm making only limited progress since its last major breakthrough two decades ago in the Uruguay round of global trade talks.
It has had more success in adjudicating trade disputes between countries but that function is now under threat after Trump blocked the appointment of judges in a move that could see the court cease to function later this year.
That would be a blow for NZ farmers who have benefited from a number of rulings in their favour and who could call on it again in the deepening quota dispute with Britain and the European Union.
The Trump threat has seen fresh efforts by countries to come up with fixes for the body’s failings.
In the front row has been NZ with Trade Minister David Parker one of 13 WTO trade ministers invited to Ottawa last October to work on possible reforms.
And just last month NZ’s WTO ambassador David Walker was appointed to facilitate discussions on the impasse over appointments to the appellate court.
Parker said proposals have been further refined since the Ottawa meeting and Finance Minister Grant Robertson attended the Davos summit in Switzerland recently where they were discussed further.
NZ has sympathy for many of the criticisms of the WTO made by the US.
They included a failure by its courts to deliver timely judgments and their tendency to stray outside international trade law as agreed by the WTO membership.
“Largely we think the US criticisms of the appellate body are correct,” Parker said.
The US has also railed against widespread non-reporting of subsidies, which it believes is undermining negotiations at the WTO to rein them in.
Parker said NZ agreed better reporting is required but with allowances for poorer countries without the bureaucracies to report subsidy use as quickly as required by WTO rules.
NZ’s position is consistent with the WTO’s principal of special and differential treatment, which holds those it deems to be developing countries to lower legal standards and allows them longer periods to phase out subsidies and tariffs under its trade deals.
The principal has irked the US, which believes it has given China cover to game the global economic system and gain an unfair trade advantage and is undermining the credibility of the organisation.
In a submission to the WTO last week the US listed Turkey, South Korea, Singapore, Mexico and Chile as countries no longer deserving of their status as developing countries.
Parker would not single out China but said NZ agreed that some countries are getting an easier ride at the WTO than their economic circumstances should allow.
“There are some countries that cling on to specialised and differential treatment … and that is something that needs to be worked on.”
A statement following the Davos meeting said the group of trade ministers will continue to work on proposals to reform the WTO and meet again in May.
