The World Trade Organization (WTO) has reappointed Dr Ngozi Okonjo-Iweala for a second term as Director-General, cementing her leadership at a time when the global trade body faces mounting challenges, including renewed U.S.-China tensions and the prospect of trade wars under the incoming Trump administration. Her new tenure, which extends until mid-2029, underscores her pivotal role in navigating the WTO through a complex and often fractious global economic landscape.
Dr Okonjo-Iweala, a trailblazer as the first African and the first woman to lead the WTO, expressed resolve in tackling the “unfinished business” of her first term. In remarks following her reappointment by consensus from all 166 WTO members, she emphasised her commitment to institutional reforms and advancing stalled negotiations on key trade issues, including fisheries subsidies.
While her unanimous selection reflects widespread support, the backdrop to her renewed term is fraught with uncertainty. U.S. President-elect Donald Trump, set to return to the White House in January, has a contentious history with the WTO. His previous administration paralysed the organisation’s dispute resolution mechanism and criticised its handling of China’s trade practices. Analysts expect a renewed focus on U.S.-China trade relations, with Trump’s team likely to challenge Beijing’s developing-country status, a designation that confers certain advantages within the WTO framework.
Dr Okonjo-Iweala has pledged a “constructive and creative approach” to engaging with the Trump administration. However, she diplomatically avoided commenting on Trump’s recent tariff warnings targeting Mexico, Canada, and China. Instead, she highlighted areas of potential collaboration, such as intellectual property rights, while reaffirming her impartiality as a representative of all WTO members.
The challenges for the WTO extend beyond U.S. politics. Despite incremental progress under U.S. President Joe Biden, including a handful of agreements in 2022, the organisation remains hamstrung in its efforts to revitalise its dispute settlement system. A December deadline for reforming the system, rendered inoperative by Trump-era opposition, looms large. Failure to achieve consensus on this front risks further eroding the WTO’s credibility as a multilateral arbiter of trade disputes.
Dr Okonjo-Iweala’s reappointment has drawn international support. China’s mission to the WTO extended congratulations via social media, expressing hope for collaboration to safeguard the multilateral trading system. Meanwhile, Petter Ølberg, WTO General Council Chair and Norwegian Ambassador, lauded the transparent and efficient reappointment process, declaring the organisation “fit for the next four years.”
Nevertheless, criticism persists. Trump allies, including his former trade representative Robert Lighthizer, have accused Dr Okonjo-Iweala of aligning with Chinese interests—an allegation she dismissed, reiterating her commitment to serving all WTO members equally.
Dr Okonjo-Iweala’s legacy at the WTO will likely hinge on her ability to bridge divides among major economic powers while ensuring the organisation remains relevant in a rapidly evolving trade environment. Her determination to approach the challenges of her second term with pragmatism and resolve reflects her understanding of the WTO’s crucial role in fostering global economic stability.
