Despite ongoing disruptions to the global trade system, the rules-based international trading framework remains resilient, according to World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala.
Speaking to the Frankfurter Allgemeine Zeitung, Okonjo-Iweala emphasized that the United States’ share of global trade accounts for only 13 percent, asserting that it should not be equated with the entirety of world trade. “The WTO lives” she stated, underscoring the organization’s continuing relevance.
While acknowledging the unprecedented disruption to global trade observed over the past 80 years, Okonjo-Iweala noted that 72 percent of trade still adheres to WTO regulations, a slight decrease from 80 percent earlier in the year. “The core of the trading system remains stable despite the exceptional turbulence” she added.
The Director-General advocated for reforms within the existing system, urging, “Let’s use this crisis to reform the trading system and make it more fit for purpose, rather than just complaining about it”. She observed a growing willingness to engage in such reforms.
While recognizing criticisms of unilateral actions by the United States, Okonjo-Iweala acknowledged that those criticisms regarding unfair trade practices, distortions of competition and a lack of transparency are, in part, justified and shared by some other WTO members.
Concerns are not solely voiced by the United States. China, for example, has expressed reservations regarding agricultural subsidies within the current framework. Furthermore, developing nations are calling for greater integration into the global trading system to enhance living conditions for their citizens. The focus moving forward is to establish fairer competitive conditions and address these concerns beyond the specific instance of China.
