By Emma Farge

GENEVA, (Reuters) – The World Trade Organization’s head stressed the need to reform the body in order to avoid trade wars. However, he warned that it will be difficult amid rising geopolitical tensions.

Under pressure from its 27-year old global trade organization, a ministerial meeting was scheduled for this week. The main topics included a plan to revise the global trade rules book.

It was delayed due to travel restrictions linked to Omicron’s COVID variant Omicron. This further dampened already low hopes of progress.

Ngozi Okonjo–Iweala answered a question at the Reuters Next conference, “Absolutely.” It is not clear if it will be possible.

“I believe it will be difficult because there is a lack of trust between members.

Since 2019, the WTO’s highest appeals chamber, The Appellate Body has been inactive. This was because the Trump administration blocked the appointment of judges.

Okonjo Iweala stated to Reuters that the WTO dispute settlement system must be preserved to avoid future trade wars. He also said Washington had “legitimate concerns” about Washington’s overreach.

She described the present atmosphere as being “fraught” with geopolitical tensions and warned that the rules-based trading system could be replaced by one that is power-based. Smaller countries will suffer the most.

“It’s absolutely important that we support multilateral trade and we don’t take it for granted,” she said.

Okonjo Iweala has been the director general since March. She said that there were many opportunities available for Geneva-based trade bodies, particularly in the field of climate change. For example, through the establishment of a global carbon market.

There are many ways that the World Trade Organization might be involved in global climate action, from promoting low carbon supply chains to the enactment of fossil fuel subsidies.  

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