Geneva – The World Trade Organization (WTO) faces an uncertain future as its current Director-General, Ngozi Okonjo-Iweala, remains the sole candidate for reappointment with the nomination period now closed, according to sources close to the process. This comes as observers prepare for renewed trade tensions under U.S. President-elect Donald Trump, who will assume office in January.
During his previous term (2017-2021), Trump disrupted the WTO by blocking appointments to its top adjudication court and imposing tariffs on U.S. steel and aluminum imports, a stance that paralyzed global trade dispute resolution. He has recently announced plans for a new 10% tariff on all imports, a move likely to escalate international trade conflicts.
“Those likely to be involved in the new administration see less value in the WTO or are openly antagonistic towards it,” said Alan Yanovich, partner at Akin Gump Strauss Hauer & Feld. “Widespread tariff increases could trigger significant friction and tension.”
The WTO, already under strain, saw minimal progress in a recent major ministerial meeting in Abu Dhabi, with discussions on agriculture, fisheries, and other issues failing to reach breakthroughs. With the need for consensus among all 166 member countries, global trade agreements remain rare.
Okonjo-Iweala, a former Nigerian finance minister and the first woman to lead the WTO, announced her bid to continue as Director-General in September, focusing on unfinished business within the organization. Despite her broad backing, there is no certainty about her reappointment.
Trump’s former trade representative, Robert Lighthizer, has criticized Okonjo-Iweala, labeling her “China’s ally in Geneva,” alluding to her support for developing nations—a category that includes China at the WTO. During Trump’s first term, the U.S. sought to block her appointment, though she gained support from President Joe Biden when he took office.
“Even without a challenger, her reappointment isn’t a given,” noted a Geneva-based WTO delegate.
The organization’s spokesperson was unavailable for immediate comment on Friday. Okonjo-Iweala, however, has maintained her focus, stating previously that Trump’s proposed tariffs would be detrimental to global trade, calling them a “lose-lose” situation for all involved.