GENEVA, Feb 13 - The leader of the World Trade Organization signaled support for the United States' demand that the global trading framework be reformed, speaking just weeks before a significant WTO session scheduled in Cameroon next month.
Last year, President Donald Trump signed an executive order imposing tariffs ranging from 10% to 41% on U.S. imports from dozens of countries and foreign locations. The U.S. Supreme Court is due to rule on their legality.
Addressing the Munich Security Conference on Friday, Ngozi Okonjo-Iweala acknowledged the disruptive nature of the U.S. tariff action while saying it should serve as a catalyst for change. "We may not like the action (U.S. tariffs), but we must take the signal that we need to reform many of the things with the world trading system," she said.
Okonjo-Iweala described the current system as one that can withstand shocks but lacks sufficient strength. "The system is resilient, but it’s not robust, so we need to make it robust by doing the necessary reforms, and that is what we’re working on at the WTO," she said, without specifying particular changes under consideration.
She called for a shift away from what she described as "lamentations" over U.S. trade policy and urged other global actors to assume greater responsibility. In particular, she pressed Europe and so-called middle powers to demonstrate leadership on reforming the trade architecture.
Context and implications
The WTO chief framed recent U.S. measures as a signal that structural adjustments are necessary within the world trading system, while stressing that concrete proposals for reform remain unspecified. Her remarks come as the organisation prepares for a major meeting in Cameroon next month.
Outlook
Okonjo-Iweala’s comments underline a period of uncertainty for global trade governance, with a pending U.S. Supreme Court decision set to determine the legality of tariffs imposed by executive order last year.