Tokyo: World Trade Organization Director-General Ngozi Okonjo-Iweala has warned that the global trading system is facing its biggest disruptions in 80 years, according to NHK. In an interview conducted in Tokyo, she highlighted ongoing tariff actions by the United States and various measures by other WTO members as indicators of the system’s failure to reform and keep pace with global changes.
According to Azerbaijan State News Agency, Okonjo-Iweala detailed the WTO’s current efforts to reform its decision-making process, which is hindered by the requirement for consensus among all member nations. This paralysis was evident when the organization held a ministerial meeting in March but was unable to adopt a work plan due to disagreements on various issues. Despite this, Okonjo-Iweala maintained that progress has been achieved.
She reiterated the relevance of the WTO by pointing out that three-quarters of global trade occurs under its terms. Addressing the effective closure of the Strait of Hormuz, Okonjo-Iweala noted its significant impact on the global trading system, particularly for East Asia, as it handles one-fifth of the world’s energy supply. She expressed hope that Japan would take a leadership role in rallying other nations to strengthen the multilateral trading system.