Okonjo-Iweala Seeks Japan’s Cooperation to Reform WTO, Says Global Free Trade in Crisis
CHIGOZIE AMADI
Director-General of World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, has stated that global free trade is in crisis.
Okonjo-Iweala solicited the support of Japan to maintain, strengthen, and reform the organisation.
She spoke while meeting with Japanese Prime Minister Shigaru Ishiba and other senior Japanese government officials in Tokyo.
Okonjo-Iweala told Ishiba that she had high expectations for Japan as a champion of open markets, as United States President Donald Trump disrupted world commerce with his fast-changing tariffs and other policies.
She said, “Trade is facing very challenging times right now and it is quite difficult. We should try to use this crisis as an opportunity to solve the challenges we have and take advantage of new trends in trade.”
According to her, Japan, as “a champion of the multilateral trading system”, must help maintain, strengthen and reform the WTO.
Okonjo-Iweala and Ishiba made a joint call, during the meeting, for strengthening of the multilateral trading system and advancing meaningful reform of the WTO.
They also called for the strengthening of the global trading system.
According to a joint statement issued after the meeting, “The director-general discussed with the prime minister and other key ministers the growing pressures facing the multilateral trading system, including rising trade tensions and risks of fragmentation.
“They shared the view that, in a time of uncertainty and disruption, the value of the multilateral trading system is unquestionable.
“They reiterated their shared commitment to working closely together, along with other WTO members, to manage current and future tensions in global trade, to strengthen the multilateral trading system, and to advance meaningful reform of the WTO.”
Okonjo-Iweala’s meeting with Ishiba came a day after the United States and China said they had agreed to slash recent sky-high tariffs for 90 days to allow time for negotiations.
Japan is among many countries yet to reach a deal with the Trump administration on hikes to US tariffs, in particular, on autos, steel, and aluminium.
WTO played a pivotal role in past decades as the US and other major economies championed trade liberalisation. This facilitated the growth of global supply chains, many of which were anchored in China.
By dismantling many protectionist barriers to trade, it had aided the ascent of Japan and China, and many other countries, as export manufacturing hubs.
Since taking office for a second time, Trump has prioritised higher tariffs to try to reduce US imports.
He also prioritised compelling companies to locate factories in the United States, and doubled down on a trade war that he had launched during his first term.
During her visit to Japan, Okonjo-Iweala and Ishiba agreed that WTO member countries should unite to restore the organisation’s capacity to address challenges.
Her visit to the Asian nation was aimed at strengthening cooperation between Japan and WTO to maintain and reinforce the multilateral trading system, Japanese officials said.
