US Tariffs Rock Global Trade: WTO Chief Urges Dialogue, Dismisses ‘Hyperventilating’
Geneva, Switzerland – September 17, 2025 – A wave of new tariffs imposed by the United States is sending shockwaves through the global economy, prompting urgent discussions about the future of international trade. World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala, in an exclusive interview with ARD-Studio Genf, cautioned against panic while acknowledging the significant disruption and addressing growing calls for a fundamental overhaul of the WTO itself.
WTO Director-General Ngozi Okonjo-Iweala addresses concerns about global trade disruption.
Calls for a ‘WTO 2.0’ Gain Momentum
European leaders have increasingly voiced the need for a revamped WTO, sometimes referred to as “WTO 2.0,” to address the current challenges. Okonjo-Iweala, however, emphasized that the focus should be on reforming the existing system rather than creating a parallel structure. “The system is disturbed in a way that we have not experienced in the past 80 years,” she admitted, “but it is resistant. 72 percent of world trade still operates under WTO rules.”
She clarified that suggestions of a completely new organization haven’t been formally presented to her. “These leaders do not want to create a parallel system, but reform the WTO,” Okonjo-Iweala stated. “There is an opportunity in every crisis – an opportunity for reform, not to found a parallel organization.” She pointed to the EU’s interest in aligning with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a complementary, rather than competitive, move within the WTO framework.
Navigating the Dispute Settlement Crisis
The WTO’s dispute settlement mechanism is currently blocked, raising concerns about its ability to effectively resolve trade conflicts. Despite this, Okonjo-Iweala highlighted that members are finding innovative ways to address disputes, utilizing mediation, arbitration, and a transitional mechanism developed by the EU and others. “Two cases have already been settled, a third is pending,” she noted, demonstrating the system’s continued functionality even in its current state.
Evergreen Insight: The WTO’s dispute settlement mechanism is a cornerstone of the multilateral trading system. Its paralysis underscores the importance of member states finding common ground to restore its full functionality. Without a robust dispute resolution process, the risk of escalating trade conflicts increases significantly.
Don’t ‘Hyperventilate’ – A Call for Calm Amidst Uncertainty
When pressed on whether the situation warrants alarm, Okonjo-Iweala firmly advised against “hyperventilating.” “You can’t constantly hyperventilate because we live in an insecure world,” she said. “Uncertainty is an integral part of business – how often should you hyperventilate?” She acknowledged the economic effects of the tariffs, noting that world trade growth will still be slightly positive, but cautioned against reactive “tit-for-tat” measures that could exacerbate the situation, echoing the mistakes of the 1930s and the Great Depression.
The Cost of ‘Tit-for-Tat’ and the Path Forward
Okonjo-Iweala stressed the importance of dialogue and avoiding retaliatory tariffs. “Our role in the WTO is to encourage our members to dialogue – with the USA and with each other – and to bring in the cases with us,” she explained. Brazil has already initiated a formal procedure against the US tariffs, and the WTO is facilitating consultations between the two countries.
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Reforms on the Horizon: Subsidies, Level Playing Fields, and Developing Nations
Looking ahead, Okonjo-Iweala identified key areas for WTO reform, including addressing subsidies (both industrial and agricultural), tackling unfair trade practices, and ensuring a level playing field for all members. She also emphasized the need to better integrate developing countries into the system, recognizing them as the future engines of global growth.
Breaking News Update: The White House has reportedly removed the WTO from its list of potential funding cuts, signaling a possible shift in the US approach to the organization. Okonjo-Iweala confirmed she has been informed of this development and expressed her appreciation.
Okonjo-Iweala concluded by reflecting on the significance of being the first woman and first African to lead the WTO. While acknowledging the historical importance, she underscored that competence remains the paramount qualification for the role, hoping her appointment will pave the way for greater diversity in future leadership positions.
The situation remains fluid, but Okonjo-Iweala’s message is clear: dialogue, reform, and a measured response are essential to navigating the current turbulence and safeguarding the future of global trade. For ongoing coverage and in-depth analysis, visit archyde.com – your source for breaking news and insightful perspectives.
