Imperfect agreements can protect and implement the rule of law and sustainable development: a new way of working at the WTO

The document proposes a shift toward 'imperfect agreements' to overcome deadlock in the WTO, suggesting that flexible, iterative, and often plurilateral arrangements can serve as stepping stones to formal law. It highlights various mechanisms, such as targeted trade deals, the use of GATS schedules for additional commitments, and interim agreements like the E-Commerce Agreement, as ways to maintain institutional relevance and implement sustainable development goals. The author contends that these dynamic approaches allow members to coordinate on urgent issues, such as digital trade and essential supplies, without waiting for full multilateral consensus.

• The author defines 'imperfect agreements' as instruments that reflect agreement on some issues but may be 'incomplete, transitional, illegal, or not respecting (all formal) requirements.' These arrangements are presented as a way to avoid 'inaction and blockages' and can exert a 'rich normative influence' by promoting trade values and initiating WTO reform.
• Targeted trade deals, often sectoral, prioritize regulatory dialogue and shared standards over rigid enforcement. The Global Value Chain Development Report 2025 identified 185 such deals in digital trade and critical minerals. These deals, such as the Digital Economy Partnership Agreement, rely on 'reputational incentives' and 'policy convergence' rather than formal dispute settlement.
• Members can formalize commitments within the WTO by inscribing them into individual GATS schedules as 'additional commitments,' a method used by the Joint Statement Initiative on Services Domestic Regulation (SDR) to bypass the need for a formal plurilateral agreement following objections from India.
• The Multi-Party Interim Appeal Arbitration Arrangement (MPIA), with 60 participating members, provides an interim arbitration appeal procedure under Article 25 of the Dispute Settlement Understanding (DSU) until a fully functioning dispute settlement system is restored.
• The E-Commerce Agreement (ECA) is described as a 'dynamic and hybrid' agreement where approximately 66 members have committed to coordinated implementation on an interim basis, allowing for domestic operationalization before formal adoption within the WTO framework.
• Following the failure to reach a permanent agreement at MC14, 23 members signed a Joint Statement to maintain the moratorium on customs duties on electronic transmissions among themselves.
• Informal and voluntary trade schemes can effectively address crises. Examples include the Singapore and New Zealand initiative on essential medical supplies (which became a legally binding agreement on 4 May 2026) and the Australia-Singapore Protocol on Economic Resilience and Essential Supplies (concluded 17 April 2026) covering petroleum oils and liquefied natural gas.

APA

Marceau, G. (2026). Imperfect agreements can protect and implement the rule of law and sustainable development: a new way of working at the WTO. Forum on Trade, Environment, & the SDGs. https://tessforum.org/latest/imperfect-agreements-can-protect-and-implement-the-rule-of-law-and-sustainable-development-a-new-way-of-working-at-the-wto

Chicago

Marceau, Gabrielle. Imperfect agreements can protect and implement the rule of law and sustainable development: a new way of working at the WTO. Forum on Trade, Environment, & the SDGs, 2026. https://tessforum.org/latest/imperfect-agreements-can-protect-and-implement-the-rule-of-law-and-sustainable-development-a-new-way-of-working-at-the-wto.

Wikipedia

{{cite report |last1=Marceau |first1=Gabrielle |title=Imperfect agreements can protect and implement the rule of law and sustainable development: a new way of working at the WTO |publisher=Forum on Trade, Environment, & the SDGs |date=7 May 2026 |url=https://tessforum.org/latest/imperfect-agreements-can-protect-and-implement-the-rule-of-law-and-sustainable-development-a-new-way-of-working-at-the-wto |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{marceau2026imperfect, author = {Marceau, Gabrielle}, title = {{Imperfect agreements can protect and implement the rule of law and sustainable development: a new way of working at the WTO}}, institution = {Forum on Trade, Environment, \& the SDGs}, year = {2026}, month = may, url = {https://tessforum.org/latest/imperfect-agreements-can-protect-and-implement-the-rule-of-law-and-sustainable-development-a-new-way-of-working-at-the-wto}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }