Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization (WTO), has recently urged middle powers such as Brazil, India, Japan, Singapore, South Korea, and Turkey to unite in defending the global trading system as tensions rise ahead of a potential new trade war between the United States and China. In her address, Okonjo-Iweala warned of the risks of fragmentation in global trade, particularly with the anticipated return of Donald Trump to the White House, who has indicated plans to impose substantial tariffs, including a 25% levy on imports from Canada and Mexico and a 10% tariff on Chinese goods. [fad97a7d]
The WTO has noted that since 2018, US-China bilateral trade has grown at a rate 30% slower than trade with the rest of the world, highlighting the increasing isolation of these two economic giants. Okonjo-Iweala emphasized the critical need for joint diplomacy between the US and China to prevent a decoupling of the global economy, which could result in a potential loss of 5-7% in global GDP. [fad97a7d]
In the context of Nigeria's economic challenges, Dr. Okonjo-Iweala has also called for a new social contract within the country to promote policy consistency and unity, moving beyond political infighting that has historically hampered development. She pointed out that Nigeria's per capita GDP is significantly lower than that of countries like South Korea, emphasizing the need for a stable environment conducive to growth. [1688e3fe]
Moreover, civil society organizations are raising concerns about the WTO's proposed investment facilitation for development (IFD) pact, which they argue primarily benefits foreign investors and lacks proper consensus. This criticism aligns with Okonjo-Iweala's vision for fostering policy consistency and stability, which is essential for achieving sustainable development. [e56d1e16]