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WTO chief slams rise of trade protectionism / Photo: LAURENT GILLIERON - POOL/AFP
NYSE - LSE
WTO chief slams rise of trade protectionism
World Trade Organization chief Ngozi Okonjo-Iweala slammed the global rise of protectionism on Thursday in Davos, while stressing that most international trade continues according to WTO rules.
Since returning to the White House a year ago, US President Donald Trump has slapped new tariffs on multiple countries, with the aim of rebalancing the US trade deficit and reindustrialising the country.
"Increasingly, in recent times, we've seen rising protectionism, even prior to the US actions," she said during a debate at the World Economic Forum meeting in eastern Switzerland.
"It's something that, of course, we think is not really good for the system, and it's part of the conversation we need to have."
"In this environment we have now, where certain countries feel 'we need to fight for our national interests', how do we proceed?" the former Nigerian finance minister said.
"What are the measures that are legitimate to say you can implement because you're fighting for your national interests, and which are not?
"And if it's national security, who is to determine your national security? What are the guardrails?"
Besides protectionism, Trump has made trade tariffs a weapon of diplomacy, as seen during the row over Greenland, an autonomous Danish territory.
Despite the rise of protectionism, Okonjo-Iweala said 72 percent of global trade was still conducted under WTO rules -- specifically the "most favoured nation" principle, which requires members of the organisation to extend any trade advantages granted to one trading partner to all their other partners to avoid discrimination.
These issues will be centre-stage at the next WTO Ministerial Conference, taking place in Cameroon from March 26 to 29, as will be the way the WTO makes its decisions.
The Geneva-based organisation currently takes decisions by consensus among its 166 members, with Okonjo-Iweala calling in Davos for greater flexibility.
India and the United States are blocking particular discussions and negotiations -- and a growing number of countries are calling for reform at the global trade body.
"The way we make decisions -- it's not working," Okonjo-Iweala said.
"We need the nimbleness... that's what I'm dreaming about," the director-general said.
X.Herrmann--BlnAP
