Okonjo-Iweala: Let’s all calm down

World Trade Organisation Director General, Ngozi Okonjo-Iweala, emphasized the importance of maintaining a cool head amidst rising trade tensions, specifically in response to the tariffs imposed and threatened by United States President Donald Trump on trading partners. In an exclusive interview with CNBC Africa's Godfrey Mutizwa on her way to Cape Town for the G20 finance ministers' meetings, Okonjo-Iweala urged for calm, dialogue, and a collaborative approach to address the challenges at hand. Reflecting on historical lessons from the 1930s when tit-for-tat tariff wars led to global GDP losses, she underscored the need for measured responses and emphasized the role of dialogue in resolving disputes. Okonjo-Iweala highlighted the significance of the World Trade Organisation's instruments to facilitate constructive conversations among members, pointing out that a majority of world trade still operates under WTO's most favored nation terms. Despite acknowledging concerns raised by various countries, including the U.S., EU, and China, about fairness in the global trading system, she advocated for a balanced perspective that also recognizes the positive strides in trade growth and the pivotal role of WTO agreements beyond tariffs. Addressing the rising trend of deglobalization and fragmentation, Okonjo-Iweala cautioned against alarmism, citing encouraging growth in services trade and the resilience of the overall trade sector. She stressed the need for a holistic approach that goes 'beyond tariffs' to leverage the full potential of WTO agreements in safeguarding human health, promoting innovation, and facilitating technology transfer. As the world navigates through evolving trade dynamics and geopolitical shifts, Okonjo-Iweala's call for composure, dialogue, and a broader understanding of the multifaceted aspects of global trade resonates as a timely reminder of the collective responsibility to preserve and strengthen the international trading system.