WTO Chief Calls for Reforms Amid 80-Year Trade Disruption
Ngozi Okonjo-Iweala urges WTO reforms to counter global trade disruptions caused by U.S. tariffs and dangerous over-dependence on China and the United States.
World Trade Organization Director-General Ngozi Okonjo-Iweala warned that global trade is facing its most significant disruption in 80 years, calling the impact of unilateral U.S. tariffs the "understatement of the century." Speaking at events in Riyadh, Saudi Arabia, including the Fortune Global Forum and the Future Investment Initiative, she described the multilateral trading system as battered and bruised but resilient, noting that approximately three-quarters of world goods trade still operates under WTO terms.
Okonjo-Iweala called for urgent reforms to the organization's 30-year-old consensus rule, arguing that the requirement for unanimity slows decision-making and can act as a veto. She acknowledged that U.S. criticisms regarding the system's lack of flexibility are valid and urged the 166 member states to engage with those concerns. Proposed modernizations include updating decision-making processes and establishing new global rules for digital and AI-driven commerce, with an e-commerce agreement targeted for March 2026.
Beyond institutional reform, the WTO Director-General warned against the dangerous over-dependence of the world on the United States for demand and China for supplies, noting that fragmentation between the two powers would disproportionately harm poorer nations. While the WTO increased its 2025 global trade growth forecast to 2.4%, it slashed the 2026 outlook to 0.5% due to higher tariffs and a cooling economy. Separately, Okonjo-Iweala urged the Nigerian government to shift its focus from economic stabilization to growth-oriented policies to reduce dependence on oil and gas.
