The upcoming WTO ministerial conference in Geneva must lead to a revival of multilateralism within the World Trade Organization. Otherwise, the WTO is in danger of sinking into irrelevance.

Frankfurt, 12/06/2022 – Commenting on the 12th WTO Ministerial Conference in Geneva, Ulrich Ackermann, Head of the Foreign Trade Department at VDMA, says:

“The upcoming WTO Ministerial Conference in Geneva must lead to a revival of multilateralism within the World Trade Organization. Otherwise, the WTO is in danger of sinking into irrelevance. First and foremost, the WTO dispute settlement procedure must be restarted. After all, Europe’s mechanical engineering sector, which is dominated by small and medium-sized enterprises, is more dependent on open markets for trade and investment than any other sector. Without functioning dispute settlement, international trade in goods is threatened by the law of the strongest. And this is happening at a time when new trade conflicts, punitive tariffs and other protectionist measures are increasingly hampering global trade. Already today, around 35 percent of German mechanical engineering exports go to countries with trade barriers, and the trend is rising.

Without a functioning dispute settlement system, international trade in goods is threatened by the law of the strongest.

Ulrich Ackermann, Head of VDMA Foreign Trade Department

Other issues also urgently need to be pushed forward at the WTO ministerial conference. These include national subsidies, the role of state-owned enterprises, forced technology transfers and public procurement. Finally, the role of the WTO Secretariat should be strengthened.”

The VDMA is Europe’s most important mechanical engineering industry associaton and represents more than 3,400 German and European companies. The industry stands for innovation, export orientation and medium-sized businesses. The companies employ around four million people in Europe, more than one million of them in Germany alone. Mechanical and plant engineering represents a European turnover volume of around 800 billion euros. In the entire manufacturing sector, it contributes the highest share to the European gross domestic product with a value added of around 270 billion euros.