The head of the WTO has called for a reform of the body to prevent future trade wars
The head of the World Trade Organization (WTO) stressed the importance of reforming the global trade body to prevent trade wars from continuing but warned it would be “difficult” amid tensions increased geopolitical tension.
The 27-year-old global trade body, under pressure to prove its involvement, is scheduled to hold a ministerial meeting this week and plans to update the global trade rule book are one of the main themes. However, it was postponed due to travel curbs related to the COVID Omicron variant, further dampening already dim hopes of progress.
When asked if the WTO is capable of reform, Mr. Ngozi Okonjo-Iweala said in an interview at the next Reuters conference: “It’s totally doable. I think it’s going to be very difficult because lack of trust. among the members.”
The WTO’s top appeals chamber, the Appellate Body, has been disabled since 2019 when the administration of former US President Donald Trump blocked judge appointments.
Okonjo-Iweala told Reuters the WTO’s dispute settlement system must be saved to prevent future trade wars, adding that Washington’s “legitimate concerns” about trade wars should be addressed. excessive access.
Describing the current atmosphere as “full of geopolitical tension”, she warned of the risk of the rules-based trading system being replaced by a power-based one, and said smaller countries will lose the most from this.
“It’s absolutely important that we support multilateral trade and we don’t take it for granted,” she said.
Okonjo-Iweala, director general since March, said she sees many opportunities for the Geneva-based trade body, including in the area of climate change, such as through development global carbon prices.
From enacting fossil fuel subsidies to promoting low-carbon supply chains, there’s no shortage of ways the WTO can take the lead in the fight against global climate change.
