WTO plans to reappoint Okonjo-Iweala before Trump swears in

Ngozi Okonjo-Iweala was the only candidate by the Friday evening deadline, but nothing is guaranteed. Keystone / Salvatore Di Nolfi

Several member states of the World Trade Organization (WTO) in Geneva are pushing to swiftly confirm a second term for Director-General Ngozi Okonjo-Iweala, before Donald Trump returns to the White House. A meeting is scheduled for November 28 and 29.

In a document released on Tuesday by the WTO, the Chairman of the General Council, the organisation’s highest authority, announced that the first day would allow Okonjo-Iweala to present her projects. The 166 members will then have the opportunity to ask her questions.

The second day “could then offer the possibility” of appointing the Nigerian for a second term by consensus as early as September 2025, said Norwegian ambassador to the WTO, Petter Ølberg.

He noted on Saturday that Okonjo-Iweala was the only candidate by the Friday evening deadline, but nothing is guaranteed. If the member states are not in full agreement, the process could extend beyond the start of Trump’s second presidency at the end of January.

+ WTO study: greater world trade helps overcome challenges

The Republican, a fierce opponent of the WTO, had obstructed the appointment of the Director-General, also an American national, for months. It took Joe Biden’s arrival to validate the appointment.

In any case, the WTO should expect significant tensions as Trump plans to impose tariffs, likely around 10%, on exports to the United States (US). These tariffs could even rise to as much as 60% for China.

Trump’s expected trade war

This could trigger a trade war, given that relations between Washington and Beijing were deplorable at the WTO during Trump’s presidency. The US had even threatened to leave the organisation and rendered its appellate body dysfunctional.

Biden has not made efforts towards reforming the organisation. At the ministerial meeting in Abu Dhabi last February, some participants even criticised the American stance.

The current lack of operational arbitration within the WTO allows the US to avoid facing rulings that could authorise taxes against them following their tariffs on steel and aluminium. Switzerland and three other countries, including China, won their case at the end of 2022, but Washington appealed. Until a WTO reform is approved, this issue remains unresolved.

Okonjo-Iweala aims to secure a second agreement on fishing, following the one achieved two years ago at the ministerial meeting in Geneva, which aimed to eliminate around $54 billion (CHF47 billion) in harmful subsidies for marine resources. The Abu Dhabi meeting did not reach a conclusion on this issue.

Trump yet to announce intentions regarding WTO

Only subsidies contributing to illegal, unreported, and unregulated fishing were included in the first agreement, totalling just over $20 billion. The remaining subsidies pertain to those that drive overfishing or overcapacity.

Praised for her tenacity, which has led to several successes, the 70-year-old Nigerian has consistently campaigned against the fragmentation of the global economy. In a second term, she will also need to work with member states to find an alternative to the moratorium on tariffs on electronic transmissions, which will not be extended beyond 2026, according to a decision made in Abu Dhabi.

According to a study, this suspension will cost wealthy countries around 0.5% of their Gross Domestic Product (GDP) and 2.5% for developing nations. Trump has not yet announced his intentions regarding the WTO.

Translated from French by DeepL/sp

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