NGOZI Okonjo-Iweala, the first African and female Director-General of the World Trade Organization (WTO), has announced her bid for a second four-year term. In a move spearheaded by an Africa-led campaign, Okonjo-Iweala is seeking re-election early to complete vital ‘unfinished business’ in global trade reforms. Her current term, which began in March 2021, has been marked by both successes and significant challenges, and she is keen to continue her efforts to reform the global trade body.
Okonjo-Iweala, a former Nigerian finance minister and one of the world’s most respected economists, made history in 2021 by becoming the first woman and African to head the WTO. With her second term, she aims to focus on delivering agreements that have stalled during her first tenure. These include finalising a deal to end harmful fisheries subsidies, achieving breakthroughs in global agricultural negotiations, and pushing for reforms in the WTO’s troubled disputes settlement system, which has been largely inactive since 2019.
Key priorities for second term
The Director-General’s re-election bid comes amid a backdrop of global economic uncertainty and geopolitical tensions. Okonjo-Iweala has stressed the need to complete negotiations on fisheries subsidies, one of the most pressing global trade issues. In 2022, she oversaw the first part of a global deal to reduce fishing subsidies that lead to overfishing, but further negotiations remain unfinished, particularly with objections from some member states, such as India.
Global agriculture is another focus. Okonjo-Iweala has emphasised the need for fair and equitable trade rules that support agricultural development, especially in developing countries. Given that many poorer nations rely heavily on agriculture for income and employment, reaching a deal in this area is crucial for economic stability in these regions.
One of the most significant hurdles she faces is reviving the WTO’s disputes settlement system, which has been paralysed since the United States blocked the appointment of new judges to the Appellate Body in 2019. Without a functioning disputes resolution mechanism, the WTO’s ability to enforce trade rules has been significantly weakened. Although President Biden’s administration has engaged in talks about possible reforms, Okonjo-Iweala will need to continue navigating complex geopolitical tensions to make meaningful progress.
Early re-election bid backed by Africa
Okonjo-Iweala’s decision to seek a second term comes after African countries pushed for an early re-election process. This early bid is partly driven by concerns over potential instability in the lead-up to the 2024 US presidential elections, which could affect support for her leadership. In 2020, former US President Donald Trump blocked her appointment, delaying her accession to the post. She only secured the position when President Biden assumed office and supported her candidacy.
This time, the early support for Okonjo-Iweala from Africa and other regions is seen as a strategic move to secure her position before any potential political shifts in the US. While she remains focused on her work, she has downplayed concerns about a potential return of Trump, stating, ‘I don’t focus on that because I have no control.’
A track record of global deals and challenges
Okonjo-Iweala is one of the few WTO chiefs to have successfully landed significant global trade deals during her first term. In 2022, she achieved a breakthrough on reducing harmful fishing subsidies, a deal that had eluded the WTO for years. She also played a key role in securing agreements during the WTO’s 12th Ministerial Conference, including a temporary waiver on intellectual property rights for COVID-19 vaccines, which was aimed at expanding access to vaccines in developing countries.
Despite these successes, her leadership has not been without challenges. A high-level meeting earlier in 2023 yielded modest outcomes, with the accession of two new members and an agreement to temporarily hold off on digital tariffs. The WTO’s broader reform agenda has also been hindered by geopolitical tensions among its 166 member states, with some negotiations, such as follow-up discussions on fisheries, being blocked by a single country.
Speaking to Reuters, Okonjo-Iweala acknowledged the difficulty of the job: ‘It is tough, you know, very tough. There’s no getting away from that. But it’s also a job that makes me want to get out of bed in the morning.’
Looking ahead
The next few months will be critical for Okonjo-Iweala as she continues her push for reforms. Her bid for re-election has until the end of November to be formalised, but the strong backing from African nations and many other member states positions her as the likely candidate to continue in the role. If no other candidates apply, and if consensus is reached among member states, she could secure her second term without contest.
Her re-election would be a crucial step for the WTO, as Okonjo-Iweala remains determined to drive much-needed reforms and navigate the organisation through a period of global trade uncertainty. With issues such as climate change, supply chain disruptions, and the rise of protectionist trade policies looming, her leadership will continue to be pivotal in shaping the future of international trade.
Okonjo-Iweala’s legacy will likely be defined by her ability to bring member states together to address these challenges and finalise the unfinished business from her first term, leaving a lasting impact on global trade governance.
As Ngozi Okonjo-Iweala seeks a second term as Director-General of the WTO, she faces both challenges and opportunities. Her determination to finalise key trade agreements, reform the WTO’s dispute system, and push for greater fairness in global agricultural trade will shape the organisation’s future. Backed by an Africa-led initiative, her early re-election campaign may help secure her leadership at a crucial moment in global trade.
