WTO's survival at stake as US resistance cripples global trade enforcement
The World Trade Organization (WTO) is facing its most severe crisis since 1945, according to Director-General Ngozi Okonjo-Iweala. She has highlighted deep challenges within the organisation, particularly due to ongoing disputes with the United States. Despite these issues, she insists that most global trade still follows WTO guidelines.
The crisis stems largely from the US blocking key WTO functions since 2017. Under both the Trump and Biden administrations, Washington has refused to appoint new members to the Appellate Body, the WTO's highest dispute settlement panel. This has left over 30 trade disputes unresolved, forcing countries to rely on weaker interim solutions like the Multi-Party Interim Appeal Arbitration Arrangement (MPIA).
Okonjo-Iweala acknowledges that the US remains a major force behind necessary reforms. However, recent US tariffs on multiple countries likely breach WTO rules, adding to the tension. She argues that while the organisation's framework is still widely used—with nearly 75% of global trade adhering to its rules—its ability to enforce decisions has been severely weakened.
To address the deadlock, she proposes that like-minded members form 'coalitions of the willing' to push forward new trade rules and agreements. Her goal is to restore the WTO's full functionality, which has been partially paralysed by US opposition.
The WTO's future depends on overcoming the current impasse caused by US resistance. Okonjo-Iweala's strategy focuses on collective action among willing members to bypass blockages and revive the organisation's enforcement power. Without progress, unresolved disputes and weakened trade rules could continue to disrupt global commerce.
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