Developing Countries and Joint Statement Initiatives at the WTO: Damned if You Join, Damned if You Don't?

Abstract

Limited progress in World Trade Organization (WTO) multilateral trade negotiations has led to calls to expand plurilateral processes through which groups of member states can negotiate new agreements. These calls have manifested in Joint Statement Initiatives (JSIs), covering issues such as investments and e-commerce. To their proponents, JSIs offer a path to update rules and move towards flexible multilateralism. However, critics argue that JSIs marginalize developing countries and reinforce the dominance of advanced economies. Notwithstanding this criticism, a growing number of developing countries are joining these initiatives. Through data collected from in-depth interviews with officials from 60 WTO member states, this article examines the drivers for growing JSI membership among developing countries. It illustrates that many are joining JSIs to avoid being excluded from agreements that might become binding in the future. While such membership is driven by fear of exclusion and the preference to ‘be in the room’, the negotiation processes of the JSIs often mean that developing countries have little actual influence over the negotiation outcomes. The article concludes that JSIs represent a significant change in the organization of multilateral trade negotiations and enable larger economies to restore their ‘go-it-alone power’ in multilateral trade governance.