THE World Trade Organisation’s (WTO) Director-General, Ngozi Okonjo-Iweala, has said she is eager to work with incoming US President Donald Trump and his trade team, despite uncertainty over his proposed tariffs on imports from China, Mexico, and Canada.
Okonjo-Iweala’s comments came after WTO member countries voted unanimously to grant her a second four-year term. She expressed optimism about engaging with the incoming US administration but remained cautious regarding Trump’s trade policies, including potential tariffs.
Trump has previously proposed significant tariffs on goods from countries including China, Mexico, and Canada. These plans, once implemented, could lead to challenges at the WTO, the global body that arbitrates international trade disputes.
‘I look forward to working with President Trump and the new team,’ Okonjo-Iweala stated. ‘However, it would be premature to comment on these issues until we have a clearer picture of his actual policies.’
The WTO is crucial to global trade, underpinning up to 80 percent of goods transactions worldwide. Okonjo-Iweala highlighted the importance of the organisation, noting that the US has significant interests in areas such as intellectual property protections, which the WTO helps regulate.
In his first term, Trump frequently bypassed the WTO’s rules, imposing tariffs on countries like China and even US allies, particularly on steel and aluminium. Now, ahead of his return to office, Trump has vowed to impose even tougher tariffs, including a 25 percent tax on imports from Mexico and Canada, and a 10 percent levy on Chinese goods.
These tariffs, if enforced, could provoke legal challenges through the WTO’s dispute resolution system. However, that body is currently stalled due to the US’s refusal to approve new members to its appeals court.
Okonjo-Iweala, a former Nigerian finance minister, said that it is essential for the WTO to remain a key player in resolving trade disputes. She emphasised her hope for a deal at the WTO to phase out harmful subsidies in the fisheries industry, which has raised concerns about the depletion of ocean fish stocks.
As Okonjo-Iweala prepares to start her second term next September, she urged patience regarding the specifics of Trump’s policies, suggesting that the real direction of trade relations would become clearer once his administration has settled in.
The WTO’s decision-making process, based on consensus among its 166 member nations, ensures that any country can block a proposal. For now, Okonjo-Iweala is focused on keeping the organisation collaborative and effective despite the shifting dynamics in global trade.
