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

This briefing argues that 'imperfect agreements'—instruments that are incomplete, transitional, or not fully formal—can be effective tools for promoting trade and sustainable development when multilateral consensus at the WTO is stalled. The author suggests that flexible, member-driven arrangements, such as targeted trade deals and soft law commitments, can generate state practice and serve as stepping stones toward formal legal codification and WTO reform.

• The author defines 'imperfect agreements' as instruments that reflect agreement on some issues but are 'incomplete, transitional, illegal, or not respecting (all formal) requirements.' These arrangements are presented as a way to avoid institutional risks associated with inaction and blockages, providing a normative influence that promotes WTO values.
• Targeted trade deals, or 'mini deals,' are typically sectoral and 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 'best-endeavour commitments' and reputational incentives rather than formal dispute settlement.
• WTO members can formalize commitments by inscribing them into individual GATS schedules as 'additional commitments,' bypassing the need for a formal plurilateral agreement. This was demonstrated by the Joint Statement Initiative on Services Domestic Regulation (SDR), where participating members embedded disciplines into their schedules despite objections from India.
• The Multi-Party Interim Appeal Arbitration Arrangement (MPIA), which currently has 60 participating members, serves as an interim arbitration appeal procedure under Article 25 of the Dispute Settlement Understanding (DSU). It allows subgroups of members to resolve disputes and clarify trade practices related to sustainable development while the Appellate Body remains non-functional.
• The E-Commerce Agreement (ECA) is described as a 'dynamic and hybrid' agreement with approximately 66 members committed to coordinated implementation on an interim basis. It allows members to operationalize commitments domestically and applies WTO dispute settlement rules mutatis mutandis via an annex, pending its eventual incorporation as a plurilateral agreement.
• Following the failure to reach a permanent agreement at MC14, 23 members signed a Joint Statement to maintain a moratorium on customs duties on electronic transmissions among themselves. Most of these signatories are also party to the ECA, with exceptions including the US, Guatemala, Mexico, Panama, Taiwan/Taipei, and Uruguay.
• Informal and voluntary trade schemes can effectively respond to crises. Examples include a Singapore and New Zealand initiative on essential medical supplies during the COVID-19 pandemic (which became a binding agreement on 4 May 2026) and the Australia-Singapore Protocol on Economic Resilience and Essential Supplies concluded on 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} }