US Invests That
WTO MFN for Equal Treatment to All Must Go
[ABS News Service/13.10.2026]
Geneva – Several
countries questioned the United States, China and the United Kingdom over their
respective World Trade Organization reform proposals at an informal meeting on
foundational issues yesterday, said people familiar with the developments.
Washington
justified its stance on rethinking the most-favored-nation principle and its
link with reciprocity.
The meeting,
convened by facilitator Ambassador Sumathi Balakrishnan of Malaysia, maintained
a conversational tone, said a trade envoy who asked not to be quoted. However,
discussions across the WTO reform tracks – covering foundational issues,
decision-making, level-playing-field issues and development provisions –
continue to leave members divided.
US Trade Envoy
Ambassador Joseph Barloon answered several questions about the basis of the US
demands, according to people present at the meeting.
The US proposal
centered on several themes including transparency and notification requirements;
changing the development architecture, particularly doing away with the
self-designation framework for availing Special and Differential Treatment;
bringing a “more flexible pathway to incorporate plurilateral agreements into
the WTO architecture”; rethinking “how the MFN principle functions in its
current form and embark on a frank discussion of the link between MFN and
reciprocity, which itself is a bedrock WTO founding principle”; and examining
the role of the Secretariat to fortifying essential security.
MFN
Washington
maintained that “MFN now is a glue keeping us from increasing trade and deepening
market opening agreements in a balanced and reciprocal manner,” said a person,
who asked not to be quoted.
The United States
also listed a series of exemptions to MFN, citing regional trade agreements, Articles
20 and 21 of the GATT, Article 25 on pathway to waivers and plurilaterals,
the person said.
Washington also
mentioned that the government procurement agreement as a means of not having
MFN as an overarching rule, the person said.
Brazil asked how
Washington would visualize changes to the MFN principle, the bedrock of the multilateral
non-discriminatory trading system.
In response, the
US trade envoy said it was a good question requiring longer examination. He also
said that the United States did not have a set or preordained outcome in mind,
said people familiar with the developments.
Clarity on US
Trade Deals
Brazil also
sought clarity on the deals the US has signed with numerous countries under the
stated objective of fair and reciprocal agreements since April 2025, which have
not yet been notified to the WTO, according to a participant who took part in
the meeting. Brazilian Trade Envoy Ambassador Guilherme Patriota asked whether
the reciprocal deals signed with members will ever be notified – and specifically,
their tariffs and how they would apply, whether on an MFN basis or in another
manner, said participants who asked not to be identified.
That issue was
not discussed during the session.
The US trade
envoy said the important aspect for now would be what members want before they can
discuss how to change MFN. He cited Ambassador Jamieson Greer’s statement to
the effect that United States wants to produce more of what it consumes and to
keep a manufacturing base.
Ambassador
Patriota commented that imbalances in trade based on trade deficits should not
be examined only quantitatively, as is often the case by pointing to total
values of deficits or surpluses, but should also be considered qualitatively.
This is because a member may have a surplus based on the export of commodities
with low value added, but may have a deficit in manufactured goods of high value
added, an Asian official said.
WTO reform
proponents like the European Union and Norway said they liked the continuation of
MFN, while some other members apparently showed some willingness to consider
and debate the issue further, said participants who asked not to be quoted.
Significantly,
most developing countries expressed concerns on changes to MFN, expressing their
opposition to the US proposal, said people familiar with the developments.
On the role of
the WTO Secretariat, several members agreed with the US stance, said participants
who asked not to be quoted. However, some reform proponents, particularly
members of the Friends of the System, came to support the WTO Secretariat,
providing more latitude to the Secretariat than Washington seemed ready to
concede, said participants who asked not to be quoted.