The head of the World Trade Organization warned on Monday that war, uncertainty and instability are weighing on the global economy and suggested the bloc adopt reforms, as elections for nearly a portion of the world’s population may bring new challenges.
WTO Director-General Ngozi Okonjo-Iweala sought to congratulate her organization as it held its biannual assembly in the United Arab Emirates, even as it faces tensions from the United States and other countries.
But she has been outspoken about the dangers ahead, as the search for food, energy and other essentials hits people’s pockets, “fueling political frustration. “
“People around the world are worried about the long term and that will be reflected at the ballot box this year,” he said.
Perhaps none is more for the WTO than the November 5 presidential election in the United States.
Former President Donald Trump, who has threatened to pull the United States out of the WTO and imposed price lists (taxes on imported goods) on both supposed friends and foes, is running again. A Trump victory could once again disrupt the global industry.
Okonjo-Iweala mentioned Trump by name, but warned against attacks on multilateralism.
“The multilateral trading system, which I have called the global public since its inception 75 years ago, continues to be misunderstood and undermined by some,” he said.
But even if President Joe Biden is re-elected, the U. S. has deep reservations about the WTO. The United States, during the last three administrations, blocked appointments to its appeals court and it is no longer functioning. Washington argues that WTO judges have overstepped their authority to resolve cases.
The U. S. has also criticized China for proceeding to describe itself as a rising country, as it did when it joined the WTO in 2001. Washington, Europe and others say Beijing is unduly hampering emerging industries and stealing or pressuring foreign corporations to cede generation. The U. S. also claims that China is flooding global markets with steel, aluminum, and other reasonable products.
WTO member countries will discuss a deal to ban subsidies that contribute to overfishing, extend the tax pause on virtual media such as movies and video games, as well as agricultural issues, when they meet this week in Abu Dhabi, the Emirati capital.
Also on Monday, at the opening session, Comoros and East Timor joined the WTO, bringing the bloc’s membership to 166.
But there are headwinds for the organization and the global economy, especially as the recovery from the coronavirus pandemic is asymmetric across countries.
Okonjo-Iweala did not mention Israel’s war against Hamas in the Gaza Strip, though he pointed to the continued disruption of shipping caused by Yemen’s Houthi rebels in the Red Sea due to the conflict.
“Disruptions to shipping on important waterways such as the Red Sea and the Panama Canal are a new source of delays and inflationary pressures,” he said.
The WTO is also hampered by its voting format, as primary decisions require consensus, meaning that countries will have to actively vote in favor for proposals to enter into force.
“If we thought the global situation looked complicated in mid-2022, when we were slowly emerging from the pandemic and the war in Ukraine had shaken food and energy security, we are now in an even more complicated situation,” Okonjo-Iweala said.
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