Nov 30, 2024, 12:42 AM
Nov 29, 2024, 8:57 AM

Ngozi Okonjo-Iweala faces Trump-era challenges as WTO chief

Highlights
  • Ngozi Okonjo-Iweala is expected to be reappointed for her second term as WTO chief amid concerns about the Trump administration's impact on international trade rules.
  • Her first term has seen significant challenges, including attacks from Trump's team and a weakened dispute settlement system.
  • The accelerated reappointment process reflects the urgency among WTO members to secure stable leadership before political shifts could disrupt operations.
Story

On Friday, November 29, 2024, in a significant move for the World Trade Organization (WTO), Ngozi Okonjo-Iweala, who has been the organization's chief since March 2021, is expected to be reappointed for a second term. This reappointment is occurring amid heightened tensions due to the anticipated return of Donald Trump as President of the United States, who has previously expressed disdain for international trade rules. Okonjo-Iweala, Nigeria's former finance minister, is notably the first woman and the first African to lead the WTO, and her leadership has been perceived as critical for the organization's future. The background of her reappointment process has been expedited, as there was concern among WTO member countries about the potential for a new Trump administration to obstruct others from stepping into the role, as had occurred four years earlier. The closed-door meeting among the WTO's 166 members set to finalize her second term highlights the urgency of ensuring Okonjo-Iweala’s role is secured before any political ramifications of America’s leadership shift come into play. Her current term is slated to conclude in August 2025. Observers like Keith Rockwell, a senior research fellow with the Hinrich Foundation, point out that there are significant tensions developing in U.S. relations with the WTO, which are likely to escalate further due to the rapid nature of her reappointment. During Donald Trump's first term, the WTO faced numerous criticisms and challenges, leading to a crippled dispute settlement appeal system and threats regarding the U.S. withdrawal from the organization. As Trump gears up to take office again, he has already signaled an intent to instigate aggressive trade policies, threatening the imposition of tariffs on several countries, including China, Canada, and Mexico right from his inauguration. Analysts are concerned that Trump's approach may infringe upon the existing WTO regulations. Elvire Fabry from the Institut Jacques Delors explains that the U.S. may not necessarily withdraw from the WTO, but could instead implement measures that disregard the organization’s rules, further complicating the global trade landscape. As the political climate becomes increasingly uncertain, the challenges facing Okonjo-Iweala's leadership will require a balancing act of maintaining support among WTO member states while navigating contentious trade dynamics fostered by the U.S. administration. It presents a crucial moment for the WTO, with its ability to enforce and uphold trade rules potentially at risk in the face of rising nationalist and protectionist sentiments among member governments worldwide. The path ahead for Okonjo-Iweala will not only be about reinforcing the significance of WTO regulations but also advocating for a renewed focus on emerging global issues such as climate change and health, which she has prioritized since taking charge.

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