The World Trade Organization (WTO) requires urgent structural reform to remain effective amid rapid economic and technological change, Director-General Ngozi Okonjo-Iweala said, warning that preserving the current framework without adaptation is no longer viable, AFP reported.
Speaking in Geneva on Wednesday, Okonjo-Iweala said the global trade body and the wider multilateral system are at a decisive moment. “We are meeting today at an inflection point, not just for the WTO, but for the multilateral system,” she said, cautioning that failure to safeguard the rules-based trading framework could lead to instability. “I don’t think the status quo is an option,” she added.
Reform is expected to dominate discussions at the WTO ministerial meeting scheduled in Cameroon next month. The organization, which oversees significant portions of global trade flows, has faced mounting operational challenges tied to its consensus-based decision-making model and a dispute settlement system weakened by tensions with the United States.
Geopolitical pressures have also intensified following U.S. President Donald Trump’s return to the White House last year, contributing to renewed trade frictions.
Okonjo-Iweala said global institutions must evolve alongside accelerating advances in technology and shifting economic realities. “The world is moving so fast. If you look at the speed at which technology is moving, and AI is moving and quantum technologies are moving,” she said, warning that organizations that fail to adapt risk becoming irrelevant.
Despite the challenges, she stressed that the WTO continues to play a central role in providing stability and predictability for international commerce. “This organization provides stability and predictability,” she said, adding that “in spite of all the knocks, it is still the bedrock for so much of world trade.”
She cautioned that a collapse of the multilateral trading system would create widespread uncertainty for businesses worldwide. “If we don’t have this system, what does it mean? I’ll be very honest with you, there’ll be chaos,” she said.
Without clear rules, companies could face unpredictable tariffs and customs valuations, she added, making it difficult to assess profitability or compliance before goods reach their destination. Businesses could also encounter unexpected regulations upon arrival, further complicating global trade operations.
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