The World Trade Organization announced on Friday that Ngozi Okonjo-Iweala will serve a second term as its director-general, beginning September 1, 2025. The Nigerian economist was the sole candidate in an expedited election process that drew both support and criticism from member nations. Her reappointment, achieved by consensus, signals continued confidence in her leadership amid looming challenges from the incoming U.S. administration and unresolved global trade disputes.
Background and Career Highlights
Okonjo-Iweala, 70, became the first woman and first African to lead the WTO when she took office in March 2021. Her career spans decades of high-level economic policy and development work. She served twice as Nigeria’s finance minister, where she spearheaded debt relief negotiations and economic reforms. Prior to that, she spent 25 years at the World Bank, rising to the position of managing director. Her academic credentials include a PhD in regional economics and development from the Massachusetts Institute of Technology. Her appointment to the WTO was initially blocked during the first Trump administration, with then-U.S. Trade Representative Robert Lighthizer labeling her an ally of China. The Biden administration later supported her, allowing her to assume the role in 2021.
Under her first term, Okonjo-Iweala focused on navigating the trade body through the COVID-19 pandemic, promoting vaccine equity, and advancing discussions on fisheries subsidies and e-commerce. She also pushed for greater inclusion of developing economies in global supply chains, a concept she calls “reglobalization.” Her reappointment process was brought forward from the original 2025 timeline after a request from a group of African nations, ostensibly to give her more time to prepare for the WTO’s 14th ministerial conference (MC14) scheduled for March 2025 in Cameroon.
The Reappointment Process
The early election process moved quickly, with Okonjo-Iweala as the only nominee. Petter Ølberg, chair of the WTO General Council, oversaw the process and stressed that all procedures were followed. “I’ve consulted with all members on every step of the way, and the decision, as you know, today, was taken by consensus – every member in support,” Ølberg told reporters during a Friday press conference. The Biden-Harris administration, which had earlier expressed concern about the expedited timeline, issued a statement congratulating Okonjo-Iweala and pledging continued collaboration. “We support strong and continued collaboration with the Director-General to find necessary paths forward to achieve substantive and procedural reform of the WTO,” the Office of the U.S. Trade Representative said.
However, the move has drawn sharp criticism from former Trump administration officials. Robert Lighthizer, who blocked Okonjo-Iweala’s initial appointment, called her “China’s ally in Geneva” in his 2023 book. Clete Willems, another former Trump trade official, told Politico EU that the decision to expedite her reappointment was “completely politically tone deaf.” The expedited schedule effectively prevents the incoming Trump administration from opposing her, a tactic that mirrors the earlier blockade. Okonjo-Iweala declined to comment directly on Trump’s tariff threats but said it was “premature to try to pronounce on these issues” and expressed a willingness to work constructively with the new U.S. administration.
Challenges Ahead for the WTO and Its Leader
Okonjo-Iweala’s second term will be shaped by several pressing issues. The WTO’s dispute settlement system remains in crisis after the U.S. blocked appointments to the Appellate Body, effectively paralyzing the appeals process. Efforts to reform the system are expected to be a major focus at MC14. She has said that “the dispute settlement system, if we’ve not completed, should be something that at MC14 we should take,” adding that agriculture also needs a breakthrough. Agriculture negotiations have long been deadlocked over issues such as farm subsidies, market access, and export restrictions. At a recent meeting of the WTO Committee on Agriculture, the U.S. and other countries challenged India’s support for rice and wheat industries, accusing it of exceeding permissible limits. India rejected the accusations.
Trade and food security are also high on her agenda. Okonjo-Iweala noted that “700 million people go to bed hungry” and that trade must play a role in solving this problem. She called for a breakthrough on curbing harmful fishery subsidies, which deplete fish stocks and threaten livelihoods in developing nations. Another priority is increasing developing economies’ participation in global supply chains, part of the “reglobalization” effort that emerged after the pandemic exposed vulnerabilities in supply networks.
The incoming Trump administration poses a significant challenge. Trump has proposed across-the-board tariffs on all U.S. imports, a move that would likely violate WTO commitments. Alan Wolff, a former WTO deputy director-general, told Agri-Pulse that the U.S. divergence from WTO principles will be a “major issue” and that Okonjo-Iweala “will undoubtedly be consulting with key members to assess how to keep the institution vibrant and relevant.” During her press conference, Okonjo-Iweala avoided direct comment on Trump’s tariffs but stressed her hope to avoid trade disputes that could harm the global trading system.
Legacy and Expectations
Okonjo-Iweala’s first term was marked by modest achievements, including a historic agreement on fisheries subsidies in 2022 and progress on e-commerce and investment facilitation. Yet many critics argue that the WTO has struggled to adapt to 21st-century trade realities, including the rise of digital trade, state capitalism, and geopolitical tensions. Her reappointment gives her another four years to push for reforms, but she faces an increasingly fragmented global trade landscape. The next ministerial conference in Cameroon will be a critical test of her ability to galvanize consensus among 164 member nations, especially with the U.S. likely to take a more confrontational stance.
In her statement on reappointment, Okonjo-Iweala emphasized her commitment to delivering results that “improve the lives of people around the world.” She expressed hope that WTO members can find common ground on legacy issues such as dispute settlement, agriculture, and fisheries subsidies. She also noted that the organization must help reduce supply chain vulnerabilities and enhance food security through trade. However, she acknowledged that “it will be up to members to decide what they want to focus on,” reflecting the reality that the WTO is a member-driven institution where consensus is often elusive.
As she prepares for her second term, Okonjo-Iweala’s leadership will be tested by both internal institutional challenges and external political pressures. Her ability to navigate these dynamics will determine whether the WTO can remain relevant in an era of rising protectionism and geopolitical rivalry. The world will be watching closely as she sets the agenda for the next four years.
Source:Agri Pulse News