World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has warned that global free trade is in crisis, urging nations to treat current challenges as opportunities for reform and cooperation. Her remarks came during a meeting with Japanese Prime Minister Shigaru Ishiba in Tokyo on Tuesday.
“Trade is facing very challenging times right now, and it is quite difficult,” Okonjo-Iweala said, emphasizing the need to address emerging trade issues while adapting to new global trends. She praised Japan as a longstanding advocate of open markets and expressed hope that it would continue to play a leadership role in preserving and reforming the multilateral trading system.
Her visit follows the recent announcement by the United States and China to temporarily reduce high tariffs for a 90-day period, giving room for further negotiations. However, Japan remains among the countries yet to reach a resolution with Washington on U.S. tariff hikes affecting key industries such as automobiles, steel, and aluminium.
The WTO has historically played a central role in reducing global trade barriers, supporting the development of global supply chains, and enabling export-driven growth for countries like Japan and China. But in recent years, the organization’s authority has been tested amid rising protectionism and unilateral actions by major economies.
Since returning to the office, U.S. President Donald Trump has intensified his protectionist approach, imposing higher tariffs aimed at curbing imports and encouraging domestic manufacturing, policies that have significantly disrupted global commerce.
During their talks, Okonjo-Iweala and Prime Minister Ishiba agreed that WTO member states must work together to restore the institution’s ability to address global trade challenges effectively.
The WTO chief’s trip to Japan is aimed at strengthening ties between the organization and Tokyo, with an emphasis on preserving the multilateral trading framework. She is also scheduled to meet with key Japanese officials, including Foreign Minister Takeshi Iwaya, Finance Minister Katsunobu Kato, and Minister of Economy, Trade and Industry Yoji Muto.
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