The World Trade Organization (WTO) unveiled its 2025 report on international trade this Wednesday, September 17 in Geneva, dedicated to the impact of AI on trade. On the sidelines of this event, the organization’s director general, Mrs. Ngozi Okonjo-Iweala , held a briefing session with media from several countries, including L’Economiste.
– The Economist: Does the WTO, as an institution, have enough tools and clout to bring countries that engage in tariff wars back into the rules of multilateralism?
– Ngozi Okonjo-Iweala: We certainly have tools at the WTO, and it’s up to the members to use them and take action. It’s not up to the WTO to act, that’s what many people don’t understand. But who is the WTO? It is its members! Our organization is different from the IMF or the World Bank. Here, the members do act. If another member’s behavior doesn’t please them or is harming their market, they have to come to us and ask for consultations. It is not up to the WTO to come out and impose sanctions; that’s not how we’re organized. And so far, we’ve had four members come forward and ask for consultations with the United States. They are China, Canada, Brazil, and India. So the tools are there, and we just have to use them.
– In this context of uncertainty, is the proliferation of free trade agreements outside the WTO ultimately an asset? Morocco, for example, has FTAs with more than 55 countries…
– I’d like to say that multilateralism has taken a hit, but it is still going strong. It is still alive and well. We need to focus on how to run it. We shouldn’t spend too much time worrying; we should focus on reconciliation. FTAs are a good thing, and you should know that they go through the WTO. We have a unit that deals with that.
Every time there is an FTA, we are notified and we study it. Most FTAs are built within the WTO platform. So there is no competition; bilateral FTAs are conducted according to WTO rules. It is a way for countries to diversify their trade and avoid being overly dependent.
The world trade system was built on the model of interdependence, unfortunately, sometimes this has turned into « overdependence «.
-Precisely, it is this overdependence that leads to price wars…
– Some countries have become very dependent on the United States for their goods. This is a lesson they should learn. Shouldn’t they therefore try to diversify their goods and markets, and enter into FTAs with other countries? Isn’t being too dependent on China a lesson too? Overdependence does not allow for resilience.
Interview by Ahlam NAZIH