A Progressive Agenda for the Multilateral Trading System — Reform or Retreat?

During 2026, the Friedrich-Ebert-Stiftung (FES) – under the intellectual leadership of Professor Joseph E. Stiglitz and Professor Martín Guzmán – has developed a study outlining a progressive vision for a fairer, more inclusive and sustainable global trading system. 

The development of this vision was accompanied by a series of international events in Brazil, Brussels and Geneva. The FES Geneva Office in cooperation with the International Institute for Sustainable Development (IISD) organised a high-level dialogue and a workshop. These discussions helped to inform an additional policy brief, which translates the broader vision by Prof. Stiglitz and Prof. Guzmán into concrete political and institutional recommendations for the multilateral trading system: A Progressive Agenda for the Multilateral Trading System – Reform or Retreat?

The policy brief, authored by Rashid S. Kaukab, senior specialist in trade and sustainable development, starts from a central observation: Despite unmet development goals, rising trade tensions, institutional deadlock and outdated rules in some areas, the multilateral trading system continues to provide an important source of stability for economies of all sizes. However, to remain relevant and effective, it must evolve to address unequal development, geopolitical tensions, climate pressures and rapid technological change. 

To this end, the brief proposes a “Geneva Consensus”, built around six priorities: 

• Developing future economic capabilities 

• Putting development first 

• Balancing global economic interdependence with resilience 

• Tackling inequalities 

• Respecting social and ecological limits 

• Enabling countries to navigate the challenges of digital technologies and artificial intelligence 

Achieving this vision, the policy brief argues, requires coordinated efforts across three fronts: reforming the WTO, strengthening collaboration among Geneva-based institutions on trade and related issues, and bringing national economic, employment, environmental and financial policies into closer alignment both internally and externally. 

Finally, the reform should be practical and gradual, starting with small steps to build confidence and trust for broader and deeper changes. 

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