WTO chief warns global trading system faces largest disruptions in 80 years
Baku, May 19, AZERTAC
World Trade Organization Director-General Ngozi Okonjo-Iweala has warned that the global trading system is facing its biggest disruptions in 80 years, according to NHK.
In an interview with NHK in Tokyo on Monday, she noted that, while the world has seen tariff actions from the United States, other WTO members have implemented different types of measures.
She said, this is because "the system has not been reforming and keeping up with the times."
The WTO is attempting to reform its decision-making process. One of its main challenges is that operations are paralyzed by the requirement for consensus among all members. Although the organization held a ministerial meeting in March, it failed to adopt a work plan.
Okonjo-Iweala attributed this setback to disagreements among members over other issues, but insisted that progress has been made.
She stressed that the WTO is still relevant, noting that three-quarters of global trade is taking place on WTO terms.
When asked for her thoughts on the effective closure of the Strait of Hormuz, she noted that it is impacting the global trading system "quite substantially." She emphasized its significance, particularly for East Asia, as one-fifth of the world's energy supply goes through the waterway.
She also expressed her desire for Japan to rally other nations to bolster the multilateral trading system.
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