WTO Secretary-General: "To Diversify Supply Chains, Developing Countries Must Find New Partners"

Amid rapidly changing trade environments due to recent geopolitical conflicts and protectionism, there have been calls to actively integrate developing countries into the global trade order and pursue supply chain diversification.

Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), is giving a lecture on the topic "Redefining Globalization: Korea's Role in a Changing World" on the afternoon of the 23rd at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. [Image source=Yonhap News]

Nguzoi Okonjo-Iweala, Director-General of the WTO, who is visiting Korea, made this assertion at a seminar held on the 23rd at the Korea Chamber of Commerce and Industry building in Jung-gu, Seoul.

The seminar, titled "Redefining Globalization: Korea's Role in a Changing World," was attended by over 200 participants, including Director-General Okonjo-Iweala, Woo Tae-hee, Executive Vice Chairman of the Korea Chamber of Commerce and Industry, Ahn Deok-geun, Director-General for Trade at the Ministry of Trade, Industry and Energy, Kim Jung-il, Vice President of SK Square, Kim Kyung-han, Vice President of POSCO, Professor Lee Jae-min of Seoul National University, and Professor Lee Hyo-young of the Korea National Diplomatic Academy.

In her keynote speech, Director-General Okonjo-Iweala explained, "Korea has grown by fully utilizing multilateral trade, and the 'Miracle on the Han River' was achieved through trade," adding, "One of the reasons the Korean economy could grow miraculously was the stable and open multilateral trade system." She then diagnosed that the global trade order is facing a crisis.

Director-General Okonjo-Iweala stated, "Geopolitical tensions are escalating, especially between the U.S. and China," and explained, "Several governments are weaponizing trade relations, leading to diplomatic conflicts."

She emphasized, "To build resilience, it is necessary to pursue supply chain diversification," and stressed the need to incorporate countries that have been marginalized in the globalization process into global trade.

She also highlighted Korea's role in revitalizing developing countries' participation in international trade. Director-General Okonjo-Iweala urged Korean companies, "Please seek non-traditional investment partners. Look into new investment areas that have not been tried before." This means that to diversify supply chains, it is necessary to find new partners and explore opportunities in developing countries. She added, "Please take a look at countries you have not usually considered," and appealed, "Please support the multilateral trade system."

During the panel discussion, various opinions were expressed regarding WTO reform tasks to restore the multilateral trade system. Professor Lee Jae-min of Seoul National University said, "Protectionism arising from U.S.-China conflicts, such as tariff measures and technological competition, is leading to industrial policies like the U.S. Inflation Reduction Act (IRA) and the Semiconductor Support Act," and urged, "Active responses at the WTO level are necessary, and obstacles to restoring and developing multilateralism should be resolved." Professor Lee Hyo-young of the Korea National Diplomatic Academy emphasized, "WTO reform is needed to restore the functions of the multilateral system," and added, "In particular, to make multilateral trade more efficient, reforms such as improving the panel process and ensuring the dispute resolution system operates properly are necessary."

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