World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has urged member states to embrace comprehensive reforms to strengthen the institution’s credibility, warning that the global trading system faces growing instability if changes are not implemented. Her appeal comes as divisions persist among members over issues of trade fairness, dispute settlement, and institutional transparency.
Speaking in an interview with China Global Television Network (CGTN), Okonjo-Iweala underscored the WTO’s central role in preserving global trade order and ensuring businesses can operate in an environment where rules are clear, predictable, and fairly enforced. She stressed that the organization has long provided a foundation for stability in international markets by giving businesses confidence in the flow of goods across borders.
“I think the role of the WTO is to provide stability and predictability in world trade and business people trade, and many of the business people from all our members, they understand very well the value of the WTO. Business people who trade want predictability and stability. They want to know that when their goods go from one country to another that they are going to arrive and they will know how the goods will be valued, what tariffs to expect and therefore how marketable their goods will be in the country that is importing those goods and whether they’ll make a profit out of it. So the predictability of global rules is what the WTO stands for and the stability,” she said.
Okonjo-Iweala cautioned that many consumers and even policymakers underestimate the unseen rules that allow the modern trading system to function seamlessly. While people expect store shelves to be stocked with products from all over the world, she explained that such convenience is only possible because of rules governing tariffs, customs procedures, and dispute resolution. Without these frameworks, global commerce would face constant uncertainty, disrupting supply chains and undermining investor confidence.
“So I think that this is what is important. People take the system for granted. They expect to walk into a store and just find the goods they want to buy sitting there but the rules that underpin that trade that brings the goods is not well known. Now, we also need to admit that you talked about reforms, that the WTO needs to listen to criticisms. And the WTO is made-up of its members, and many of them are criticizing one thing or the other about the way it functions. This is a golden opportunity for members to say, ok, global trade is in a crisis, let’s seize the opportunity to do the reforms and tackle the challenges of the system and make it even better,” she said.
Her remarks come at a time of growing strain in international trade relations, particularly as U.S. policies under renewed nationalist and protectionist pressure raise fears of escalating trade wars. Rising tariffs, restrictions on technology flows, and disputes over subsidies have already disrupted trade patterns, leaving smaller and developing economies particularly vulnerable.
The WTO’s dispute settlement system, once regarded as the “crown jewel” of the institution, has been paralyzed in recent years, with the appellate body unable to function due to a U.S. blockade on the appointment of judges. Many members argue that restoring this mechanism is essential if the WTO is to maintain its credibility as an impartial arbiter of trade disputes.
Okonjo-Iweala framed the current crisis as an opportunity for renewal, calling on members to bridge their differences and modernize the institution for 21st-century challenges. She highlighted the need to address digital trade, e-commerce regulations, and climate-related trade policies, which are becoming increasingly central to global commerce but remain inadequately covered under existing rules.
Her call for reforms also reflects mounting pressure from developing countries, which argue that the system disproportionately favors wealthier nations. By ensuring fairer treatment and addressing long-standing concerns about equity, she said, the WTO can regain trust among its diverse membership and reinforce its role as a guardian of multilateralism.
As global markets face uncertainty fueled by geopolitical rivalries and economic nationalism, Okonjo-Iweala’s message underscores the urgency of cooperation. Without reforms, she warned, the rules-based trading order that has underpinned decades of globalization could erode further, undermining both stability and prosperity.
