..,....Calls for Overhaul of WTO System, Warns Against Global Trade Over-Dependence
The Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, has called for urgent reforms of the global trade body’s system, saying it has become too rigid to respond effectively to today’s fast-changing economic realities.
Speaking in an interview with Arise TV on the sidelines of the Future Investment Initiative in Riyadh, Saudi Arabia, Okonjo-Iweala acknowledged criticisms—especially from the United States—about the WTO’s slow and cumbersome decision-making process.
“The US feels the WTO is not flexible enough—and I share that concern,” she said. “With 166 members using a consensus-based system, decision-making can be painfully slow. Consensus is important because it gives small countries a voice, but when it turns into unanimity, it effectively becomes a veto.”
The WTO chief advocated for a “more workable consensus,” allowing coalitions of willing members to move ahead with new agreements and rules. She added that the system, though built for interdependence, has drifted into “over-dependence,” with many economies relying too heavily on a few major players such as the US and China.
Okonjo-Iweala urged countries to diversify their trade relations and tap into new markets, describing Africa as the “next frontier” with its rich deposits of critical minerals and a growing population projected to represent one in five workers globally by 2050.
On the resilience of the global trade system, she said the WTO had survived “its greatest disruption in history,” noting that despite trade tensions and tariffs, 72 percent of global trade still occurs under WTO terms.
She added that world trade growth forecasts have improved—from 0.9 percent earlier in the year to 2.4 percent—partly driven by increased trading in artificial intelligence-related goods.
The DG also spoke about the role of subsidies, describing “good subsidies” as those that encourage innovation, startups, and green growth, while cautioning against those that prop up inefficient enterprises.
Turning to Nigeria’s economy, Okonjo-Iweala noted that the country’s stabilisation efforts are beginning to yield results, but urged the government to now focus on driving inclusive growth.
“The government must now prioritise growth. People only feel economic progress when growth translates to better livelihoods,” she said, calling for stronger support for small and medium enterprises, agriculture, and creative industries.
She emphasised that Nigeria’s overreliance on oil must give way to a diversified economy powered by innovation, entrepreneurship, and rural development.
Alternative Catchy Headlines:
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“Okonjo-Iweala: WTO Must Become More Flexible to Meet Global Trade Realities”
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“WTO Chief Warns World Is ‘Over-Dependent’; Calls for System Reform”
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“Africa Is the Future of Trade, Says WTO’s Okonjo-Iweala”
