A former head of the World Trade Organization (WTO) has warned that the future of global trade, heavily impacted by U.S. President Donald Trump’s protectionist measures, may be determined outside of the 30-year-old institution unless it undergoes swift reforms. Roberto Azevedo, who served as director-general until 2020, highlighted during a recent WTO anniversary event that if the organization does not adapt, it risks becoming irrelevant. He stressed that losing interest in shared trading rules could lead to the formation of a new global trading framework that might exclude current members. Current WTO director-general Ngozi Okonjo-Iweala echoed this sentiment, urging member nations to initiate a reform process in Geneva ahead of a key ministerial meeting scheduled for next year in Cameroon.
She emphasized the necessity to ask the right questions and establish a member-driven initiative for reform. As global markets continue to experience volatility—despite a temporary reprieve when Trump paused tariffs for most countries—efforts to modernize WTO regulations face challenges. This stagnation largely stems from the requirement for consensus among all 166 member countries. Past attempts to revive the WTO’s stalled appellate body have also proven unsuccessful.
Supachai Panitchpakdi, who led the organization from 2002 to 2005, stressed the urgency of reform to avoid a severe recession that could surpass the 2008 financial crisis, emphasizing that future downturns would be driven by trade issues. He proposed a month-long discussion among trade delegates to negotiate tariffs, followed by short, focused talks to lower barriers and establish modern trade rules. Additionally, a coalition of 39 nations, including China, Canada, and Britain, has expressed support for the WTO and called for decisive collective measures to maintain it as the foundation of a rules-based international trade system.