WTO Director-General, Okonjo-Iweala on trade outlook, global economy

The Director General of the World Trade Organization, Ngozi Okonjo-Iweala, recently sat down for an exclusive interview with CNBC Africa to discuss the global trade outlook, the economy, and the need for reform in the global multilateral trading system. As the head of the ministerial conference that brings trade ministers from all over the world, Okonjo-Iweala highlighted the critical issues facing the global economy at this time. She emphasized the multiple crises affecting the world, including international security challenges, the ongoing health crisis due to the pandemic, energy shortages, food insecurity, and the climate crisis. Okonjo-Iweala stressed the importance of addressing these crises through the World Trade Organization (WTO) and finding solutions with the help of member countries and ministers. One of the key issues discussed at the conference was the negotiation on fisheries subsidies. This agreement aims to eliminate harmful subsidies that contribute to overcapacity and overfishing, ultimately promoting sustainability in our oceans. Okonjo-Iweala expressed optimism about the progress being made in the negotiations and hoped that ministers would be able to reach an agreement to advance the package further. She also highlighted the role of the multilateral trade system in addressing the looming food crisis. The WTO is working to ensure that policy actions of member countries do not exacerbate global food price spikes. Additionally, efforts are being made to support countries in producing food for themselves and implementing measures to stabilize food prices globally. The conversation then shifted to the challenges facing the global economy, particularly in light of the World Bank's warning about a widening wealth gap and a slowdown in economic growth. Okonjo-Iweala acknowledged the impact of rising food prices and inflation on vulnerable populations, emphasizing the need for countries to focus on mitigating these effects and providing support to those most affected. She also addressed the energy crisis, highlighting the importance of increasing energy supplies and reducing the impact of rising prices on low-income groups. The discussion then turned to WTO reforms, with Okonjo-Iweala stressing the importance of updating the organization's functions to meet the needs of member countries. While there is general consensus on the need for reforms, the specifics of these changes are still being discussed among members. Okonjo-Iweala highlighted the potential for the WTO to better serve developing countries by focusing on supporting small and medium enterprises, promoting women's role in trade, and leveraging digital trade for inclusive growth. She also addressed the disruptions in global supply chains caused by the COVID-19 lockdowns in China and structural factors affecting trade flows. Overall, Okonjo-Iweala's insights shed light on the challenges and opportunities facing the global economy and the crucial role of the WTO in promoting sustainable and inclusive trade practices.