New WTO Director General: 'New breeze' for the reform era

Passion for commerce

“It is difficult to break through a glass ceiling, let alone a steel ceiling. That would never happen in Geneva - the headquarters of the world's largest multilateral trade body -WTO”. The Africa Report’s figurative metaphor is a reference to Ngozi Okonjo-Iweala, a woman of color, becoming the WTO Director-General – something that has never happened before at the organization. However, for Ms. Okonjo-Iweala, this is not the first time she has made history.

Ngozi Okonjo-Iweala, born in 1954, is a renowned Nigerian economist. She graduated as valedictorian of her class in Economics from Harvard University (USA) in 1976. She then earned a PhD from the Massachusetts Institute of Technology. About 17 years ago, Dr. Ngozi Okonjo-Iweala challenged Nigeria's patriarchy by becoming Nigeria's longest-serving Finance Minister, Foreign Minister and most importantly, the first woman to hold those positions.

Ms. Ngozi Okonjo-Iweala became the first woman to lead the WTO. Photo: Keystone

The Nigerian economist also made a name for herself in Washington DC after spending 25 years at the World Bank. As CEO, Okonjo-Iweala was instrumental in a number of development projects in Africa, Europe, and Central Asia. In 2012, she ran for the presidency of the World Bank with the support of African and developing countries, attempting to break the American dominance of the position. Although her bid was unsuccessful, Okonjo-Iweala's reputation was once again cemented and she won more support.

In October 2020, after running for the position of WTO Director-General, she was supported by almost all member countries, except the US, by the then-President Donald Trump administration.support Korean candidate. However, the opportunity for Ms. Okonjo-Iweala became wide open when the new administration in the US took office and announced its support for her to be the head of the WTO. “She is widely respected for her effective leadership and has demonstrated management experience in a large international organization with a diverse membership,” the Office of the US Trade Representative assessed.

Okonjo-Iweala will officially assume the top position at this multilateral organization on March 1 - marking a historic milestone in a glorious but not without thorns career path. Last year, when asked why she was running for the highest position of WTO - a job that many people consider difficult and thorny, the 66-year-old woman simply smiled: "Because I am really passionate about trade".

“I am a hard worker. I can sleep on the cold floor anytime.”

Mrs. Okonjo-Iweala

Okonjo-Iweala is described as a hard-working, humble, resilient woman who can endure any hardship. She lived through Nigeria's brutal civil war in her teenage years, which left her family of intellectuals destitute. "I am a hard-working person. I can sleep on the cold floor any time," she said in an interview in 2012. While serving as Nigeria's finance minister, kidnappers demanded Okonjo-Iweala's resignation after taking her mother hostage. She refused, the BBC reported, and her 83-year-old mother was released a few days later.

Former Nigerian Foreign and Finance Minister Ngozi Okonjo-Iweala speaks to journalists in Geneva, on July 15, 2020.

Former WTO Director-General Pascal Lamy said that Ms. Okonjo-Iweala has the stature, experience, connections and drive to get the job done. “I think she is a good choice. The key to her success will be her ability to operate between the US-EU-China triangle,” Mr. Lamy said. Nigerians are also proud and express their confidence in Ms. Okonjo-Iweala because her achievements are an inspiration to all women in this country.

Vision for the WTO

The WTO is at a crossroads after many countries appeared to have retreated from international trade norms, protectionism increased, and trade tensions were uncontrollable. In addition, the organization's appellate body has been paralyzed for months after the United States, under the Trump administration, blocked the appointment of new judges, leaving it unable to rule on any trade disputes. "My vision is a rejuvenated and strengthened WTO that can confidently and effectively address ongoing issues," Okonjo-Iweala told WTO members during a hearing in July 2020. Among the new WTO chief's biggest priorities is to resume stalled trade negotiations on fisheries subsidies, "reviving"WTO Appellate Body.

Ms. Okonjo-Iweala is expected to bring a "breath of fresh air" to the WTO reform era.

She also affirmed that the WTO needs to be reformed and updated to take into account the changes of the 21st century such as e-commerce, digital economy, green economy. Officials in the European Union and the United States have previously recognized the need to reform the WTO but could not reach a consensus on how to do it. With her experience and prestige, Ms. Okonjo-Iweala is expected to bring a "fresh wind" to the reform era of the WTO with her diplomatic skills and persuasive ability.

WTO headquarters in Geneva. Photo: AFP

For the WTO, restoring normal operations of this organization has become urgent and important, especially in the context of the Covid-19 pandemic that is disrupting trade activities around the world. The new WTO Director-General expressed hope that the organization will play a role in fighting the Covid-19 pandemic, especially by supporting the Covax Facility - a global program to ensure access to pandemic vaccines for poorer countries. Based on 25 years of experience as an economist at the World Bank (WB) and Chair of the Gavi vaccine alliance since 2016, Ms. Okonjo-Iweala also wants developing countries to produce more vaccines themselves to overcome supply shortages.

The new WTO Director-General’s vision and priorities are certainly on the right track, but the road to success is fraught with challenges and pressures. Take, for example, the revival of the WTO’s dispute settlement system. Although the Biden administration, which has “full support” for Okonjo-Iweala’s candidacy, has yet to make a decision on whether to revive the WTO’s Appellate Body.

The task of restarting stalled trade talks is also seen as thorny. For years, the WTO has made little progress on major international trade agreements due to disagreements between members such as the US, China and India. Trade tensions between the US, China and the European Union are rising. Washington and Brussels are urging the WTO to review China’s status in the organization, accusing Beijing of using its “developing economy” designation to gain growth advantages.

This context forces the WTO to be the most impartial arbiter. Furthermore, regardless of the field of action, the highest task of the new WTO Director-General is to find ways to restore global confidence in the world's largest multilateral trade body and steer the organization into a new era of greater efficiency and success./.