The head of the World Trade Organization (WTO) warned on Wednesday that the global trading system could slide into “chaos” without shared rules, urging members to overhaul the institution so it can keep up with geopolitical tensions and rapid technological change.
Ngozi Okonjo-Iweala, speaking at a media briefing of the Association of Accredited Correspondents at the United Nations (UN) in Geneva, said multilateral organizations remain indispensable despite doubts about their relevance.
“At a time of geopolitical tensions, international cooperation has never been more needed,” she said, adding that fora such as the WTO enable countries to “come together … to try to handle these problems.”
But she emphasized that the current model cannot endure.
“Multilateral organizations like ours need to change to be fit for purpose,” she said.
Okonjo-Iweala cautioned that without the WTO’s rules-based framework, businesses would confront uncertainty over tariffs, product standards, and customs procedures.
“I’ll be very honest with you, there’ll be chaos,” she said, noting that every country could simply act as it wished.
She cited the protectionist spiral of the 1930s as a warning, saying: “No one wants to see a rerun of a bad movie.”
The director general said a ministers’ meeting later this year is expected to approve a work program for “comprehensive reform or deep reform” rather than quick fixes.
She also highlighted broader global shifts and inequality as sources of tension that demand updated rules and cooperation.
The WTO, she added, must not only fix shortcomings but also capitalize on opportunities in areas such as digital and green trade.
“We have not only to be resilient, we have to be robust … and to be robust, we must reform,” she said.
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