The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has issued a strong warning against escalating global trade tensions, urging nations to avoid the destructive consequences of a potential trade war. Her comments come in the wake of former U.S. President Donald Trump's recent threats to impose new tariffs on various countries, signaling a possible shift toward protectionist policies.
Dr. Okonjo-Iweala emphasized the importance of multilateral cooperation in maintaining stability within the global economy, urging leaders worldwide to prioritize dialogue and negotiation over unilateral action. "We are at a crossroads where the actions we take today could have profound and lasting impacts on global trade, growth, and prosperity. A trade war would not only disrupt global supply chains but also harm consumers, businesses, and economies across the world," she said.
Trump, who is speculated to be considering a return to the political stage in 2024, has been vocal about his intention to reimpose tariffs on countries he deems to be engaging in unfair trade practices, particularly targeting China and other key trading partners. His approach echoes his “America First” policy, which prioritizes domestic industries over international agreements.
Okonjo-Iweala, who has been a strong advocate for free trade and the reduction of trade barriers, called on governments to uphold the principles of the WTO, which aim to create a fair, predictable, and transparent international trading system. "The WTO remains committed to working with all members to address trade imbalances, but unilateral tariff actions only undermine the system that has benefitted global trade for decades," she added.
The Director-General also underscored the critical role of diplomacy and constructive engagement in resolving trade disputes, especially as countries recover from the economic impact of the COVID-19 pandemic. "Now, more than ever, we must prioritize cooperation over confrontation to ensure a sustainable and inclusive recovery for all nations."