Excitement in Nigeria as Okonjo-Iweala gets reappointed WTO DG

Rockwell, a former WTO spokesman, told AFP that speeding up Okonjo-Iweala’s reappointment “creates tensions in the relationship with the United States, for sure — tensions which would probably have been there under any circumstances, but now this raises the stakes”.

During Trump’s first term, the WTO faced relentless attacks from his administration, which crippled the organisation’s dispute settlement appeal system, and also threatened to pull the United States out of the organisation altogether.

And Trump has already signalled he is preparing to launch all-out trade wars, threatening to unleash a flurry of tariffs on China, Canada and Mexico on his first day in office on January 20.

“The festival of tariffs announced to date shows that he has no intention of following any rules,” said Elvire Fabry, a researcher at the Institut Jacques Delors think-tank.

“The United States would not even need to withdraw from the WTO,” she told AFP. “They are freeing themselves from the WTO rules”.

In this context, the WTO chief will have “a firefighter role”, she said.

– ‘Very difficult’ –

It will be a question of “saving what can be saved, and making the case that there is no real alternative to the WTO rules”, said another source close to the discussions on speeding up Okonjo-Iweala’s reappointment.

“It will be a very difficult mandate, with little certainty about what will happen.”

Rockwell noted that the WTO’s problems were not solely linked to Washington.

“It is a time right now in which application of the WTO rules has deteriorated,” he said.

“You can’t blame all of this on the United States. That’s true of many other members as well.”

Dmitry Grozoubinski, author of the book “Why Politicians Lie about Trade”, agreed.

“Governments are increasingly turning to trade measures to address issues like national security, environmental competition, and re-industrialisation, and policymakers aren’t as moved as they once were by arguments that their ideas violate the letter or spirit of WTO commitments,” he told AFP.

“If president-elect Trump makes destroying the WTO a priority,” he said, the organisation’s “options will be limited as the institution is not built to withstand overt demolition from within its membership”.

Since taking the WTO reins, Okonjo-Iweala has tried to breathe new life into the fragile organisation, pushing for fresh focus on areas like climate change and health.

But pressure is growing for WTO reform, in particular of the moribund appeals portion of its dispute settlement system, which collapsed during the first Trump presidency as Washington blocked the appointment of judges.