The World Trade Organization (WTO) needs reforms, according to its Director‑General, Ngozi Okonjo‑Iweala. Speaking at the Future Investment Initiative conference in Riyadh, she stressed the importance of updating the WTO’s consensus rule, which requires unanimous agreement among members to approve global trade deals. She warned that this rule can slow decision‑making and hinder the organization’s ability to respond to trade challenges.
Founded over 30 years ago, the WTO now faces significant disruptions to the global trading system, which Okonjo‑Iweala described as “battered but not broken.” Its 166 members must work together to address issues such as the impact of U.S. tariffs on trading partners. Despite these difficulties, nearly three‑quarters of global goods trade still occurs under WTO terms, underscoring the organization’s continued relevance.
Okonjo‑Iweala urged WTO members to engage with the United States on its criticisms of the body, acknowledging that many concerns are valid. She emphasized that the current system cannot remain unchanged and that the consensus decision‑making process, in particular, needs revision to enable more efficient and effective action.
The global trading system is experiencing its biggest disruption in eight decades, driven by rising protectionism and trade tensions among major economies. In this context, the WTO’s role in promoting free trade and resolving disputes is more critical than ever. Okonjo‑Iweala’s call for reform reflects the need for the organization to adapt to changing circumstances and continue serving its members’ interests.
The WTO’s ability to meet these challenges will depend on its capacity to reform and evolve. As the organization moves forward, reform efforts are likely to become a central focus, aiming to create a more effective and responsive institution that can promote free trade and economic cooperation among its members.
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