First African WTO Chief Surpasses US Wall... Trade Order Faces Rough Road Ahead

[Image source=Yonhap News]

[Asia Economy Reporter Yujin Cho] Ngozi Okonjo-Iweala, a Nigerian national, has been elected as the next Director-General of the World Trade Organization (WTO). Amid rising global trade tensions and the rapidly reshaping world trade order due to the United States' return to multilateralism, international attention is focused on the role of the new leader from a developing country.

According to major foreign media including the Associated Press on the 15th (local time), the WTO held a special council meeting and unanimously appointed Okonjo-Iweala as Director-General with the agreement of its 164 member countries. This is the first time since the organization's establishment in 1995 that a woman and an African has been elected as WTO Director-General. Okonjo-Iweala will officially take office on March 1. Her term is four years, with the possibility of one reappointment.

The most urgent task for the new leader is to "restore the WTO's functionality." Due to former U.S. President Donald Trump's protectionist stance, the WTO's Appellate Body, which has served as the supreme court for international trade disputes, has lost its function for two years because it failed to maintain the minimum legal requirement of "three appellate members." The key issue is whether President Joe Biden will fill the vacant appellate member seats. The Biden administration expressed right after the election news that it will "work closely with Director-General Okonjo-Iweala," raising expectations that the WTO's functions will be resumed.

Issues pending at the WTO, such as export restrictions between South Korea and Japan, have also come under her influence. The Japanese export restrictions on South Korea, which have been brought to the WTO, are approaching a full review. Because of this, Japan had opposed Yoo Myung-hee, the former head of the Korea Ministry of Trade, Industry and Energy's trade negotiation division, who had competed against Okonjo-Iweala.

Japan is showing a growing sense of expectation regarding Okonjo-Iweala's election as head. Japan's public broadcaster NHK reported, "Fairness and neutrality are qualities required of the WTO chief," adding, "Since South Korea is in conflict with Japan over export restrictions on raw materials such as semiconductors, if Yoo Myung-hee had been elected, there would have been concerns about fairness toward the Japanese government."

There is also interest in what stance she will take amid the trade disputes between the U.S. and China. Okonjo-Iweala, being of African descent, has faced concerns about a pro-China inclination. When she served as Nigeria's Finance Minister, she promoted the Belt and Road Initiative with the Chinese government. At the 2018 World Economic Forum (WEF), she actively defended China's Belt and Road policy in an interview with China Global Television Network (CGTN), a Chinese state broadcaster.

On the day of her election, China's Ministry of Commerce issued a statement congratulating her, saying, "We have full confidence in (Okonjo-Iweala)." The Chinese Mission to Geneva also evaluated, "The WTO is at a critical juncture," and "The decision by all member countries shows not only confidence in Dr. Ngozi but also our vision, expectations, and trust in the multilateral trade system."

After taking office, Okonjo-Iweala stated in a press release that she would play a role in preventing the spread of COVID-19. In a media interview held at her home immediately after her election, she said, "The top priority is to accelerate efforts to lift export restrictions that slow down trade in essential medicines and supplies among member countries." CNBC mentioned her background as a board member of Gavi, the Vaccine Alliance, and predicted that she would actively work to expand COVID-19 vaccine support to the poorest countries.

The Associated Press reported, "She has risen to the WTO leadership four years after the U.S. imposed unprecedented tariffs on China and the European Union (EU), triggering turbulent trade disputes," adding, "She faces the challenge of resolving not only disputes among the U.S., China, and the EU but also the lack of trust with developing country members."

This content was produced with the assistance of AI translation services.