The WTO headship presents no challenge to Dr Okonjo-Iweala as she bids for a second term. But there’s fear that Trump’s return would threaten her second term.
Ngozi Okonjo-Iweala’s bid for a second term as head of the World Trade Organization (WTO) is almost sure, as there appears no challenger. The deadline for candidates is midnight of Nov 9, 2024. However, there is fear that with Donald Trump as America’s president-elect, things may be a bit dicey.
The former Nigerian finance minister and first female Director-General of the WTO had announced in September that she would like to continue her work at the global trade body.
Sources close to the WTO indicate that no other candidates have emerged to challenge Okonjo-Iweala’s reappointment.
Okonjo-Iweala has received strong backing from many WTO members. Her leadership has been praised for its focus on developing countries. However, a Geneva-based delegate warned that Trump’s re-election could threaten her second term.
During his presidency, Trump openly opposed Okonjo-Iweala’s leadership, even blocking her appointment in 2020. His administration’s protectionist stance and criticism of WTO processes left a deep mark. Former U.S. Trade Representative Robert Lighthizer, a Trump ally, has labeled Okonjo-Iweala as “China’s ally in Geneva” due to her support for developing countries. Critics have pointed to her stance on global trade rules, which they argue disproportionately benefits China.
Trump’s return could stymie WTO reforms
With Trump’s return to office, WTO headship could face new challenges. His policies have already shown a disregard for multilateral institutions, and experts fear that his administration may continue to undermine the WTO.
During his first term, Trump blocked appointments to the WTO’s top adjudication body, paralyzing its operations. He also imposed tariffs on steel and aluminum imports and threatened global trade wars, straining relations with key partners.
Carlos Vejar, a former Mexican trade negotiator, suggests that Trump would likely bypass the WTO altogether. Instead, he may focus on reshoring production to the U.S. and escalating tariffs on imports from countries like China. This approach, Vejar argues, would undermine efforts to revive the WTO and make any progress on trade issues much harder to achieve.
WTO headship faces growing tensions under global trade friction
Despite Okonjo-Iweala’s achievements, the WTO is in a precarious position. Frustration is high within the organization, with recent ministerial meetings failing to produce significant results. Disagreements on key issues such as agriculture and fisheries have stalled progress, and consensus among all 166 WTO members remains elusive.
Okonjo-Iweala’s leadership has been challenged by these tensions. At a recent meeting in Abu Dhabi, there were few breakthroughs on key global trade issues. While she has made efforts to reform the WTO, many trade experts worry that the body’s decision-making process is too slow to adapt to the rapidly changing global economy.
Should Trump return to power, he may exacerbate these challenges. Alan Yanovich, a partner at Akin Gump Strauss Hauer & Feld, suggests that the U.S. under Trump may see diminishing value in the WTO, focusing instead on protectionist trade policies. This could further undermine the body’s ability to mediate global trade disputes.
Can Okonjo-Iweala secure her second term?
With no challengers in sight, Okonjo-Iweala’s bid for a second term may appear secure. However, if Trump returns to the White House, her reappointment may become much more complicated. She has made it clear that she cannot control the political dynamics in Washington, acknowledging the unpredictable nature of global politics.
Despite these uncertainties, Okonjo-Iweala remains focused on her mission to complete “unfinished business” at the WTO.
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