Despite ongoing shifts, the rules-based global trading system remains robust, according to World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala. Addressing concerns surrounding US trade policies, Okonjo-Iweala emphasized that the United States accounts for only 13% of global trade, stating that its actions should not be equated with the overall trading landscape. She affirmed, “The WTO lives.
Acknowledging the unprecedented disruption to the global trade system-a period unlike any seen in 80 years-Okonjo-Iweala highlighted that 72% of international trade currently adheres to WTO rules, a slight decrease from 80% earlier in the year. However, she insisted, “The core of the trading system remains stable despite the unparalleled disturbances.
Okonjo-Iweala is advocating for reform within the existing system, viewing the current challenges as an opportunity for improvement. “Let’s use this crisis to reform the trading system and make it more fit for purpose, rather than just complaining” she urged. She observed a growing willingness to embrace reform and noted that while unilateral actions by the US draw criticism, concerns regarding unfair trade practices, distorted competition and a lack of transparency are shared by some WTO members.
These concerns extend beyond the US, with examples including China’s reservations regarding agricultural subsidies and calls from developing nations to better integrate them into the global trading system to improve living conditions. The focus now is on establishing fair competition, not exclusively in relation to China.