The World Trade Organization (WTO) is in need of reforms, according to its Director-General, Ngozi Okonjo-Iweala. Speaking at the Future Investment Initiative conference in Riyadh, Okonjo-Iweala emphasized the importance of updating the institution’s consensus rule, which requires unanimous agreement among members to secure global trade deals. This rule, she noted, can slow down decision-making and hinder the organization’s ability to respond to global trade challenges.

The WTO, established over 30 years ago, is facing significant disruptions to the global trading system, which Okonjo-Iweala described as “battered but not broken.” The organization’s 166 members must work together to address these challenges, including the impact of tariffs imposed by the United States on its trading partners. Despite these challenges, Okonjo-Iweala highlighted the fact that nearly three-quarters of global goods trade is still conducted under WTO terms, demonstrating the organization’s continued relevance.

Okonjo-Iweala also urged WTO members to engage with the United States on its criticisms of the organization, acknowledging that many of these concerns are valid. She emphasized the need for reform, stating that the current system cannot continue unchanged. The WTO’s consensus decision-making process, in particular, requires revision to enable more efficient and effective decision-making.

The global trading system is undergoing its biggest disruption in eight decades, with the rise of protectionism and trade tensions between major economies. In this context, the WTO’s role in promoting free trade and resolving trade disputes is more critical than ever. Okonjo-Iweala’s call for reform is a recognition of the need for the organization to adapt to these changing circumstances and to continue to promote the interests of its members.

The WTO’s ability to respond to these challenges will depend on its ability to reform and evolve. Okonjo-Iweala’s comments highlight the need for the organization to work together with its members to address the challenges facing the global trading system. As the WTO moves forward, it is likely that reform efforts will be a key focus, with the goal of creating a more effective and responsive organization that can promote free trade and economic cooperation among its members.