On Monday, former Nigerian finance and foreign minister and World Bank economist Ngozi Okonjo-Iweala was unanimously appointed as the new Director-General (DG) of the World Trade Organisation (WTO) after months of deadlock that were led by the United States (US). Her appointment marks a historic occasion, given that she is both the first woman and the first African to hold the post. She will assume the role on March 1 and will lead the Organisation until August 31, 2025.
Following the announcement, Okonjo-Iweala released a statement saying that her “top priority” would be mitigating the economic and health impacts of the COVID-19 pandemic and making the WTO “stronger, more agile, and better adapted to the realities of today”. David Walker, the WTO’s General Council chair said described her appointment as a “significant moment”.
In her capacity as a special envoy of the African Union (AU) she has advocated for the withdrawal of sanctions against financially vulnerable countries like Sudan and Zimbabwe, arguing, “Look, the virus doesn't know what sanctions are... If we don't help them in the same way other countries are being helped, they will have the virus and will infect everyone else.”
Okonjo-Iweala is a former finance and foreign minister in the African nation, and is celebrated for having reduced Nigeria’s debt burden by billions of dollars during her tenure. Aside from serving as foreign minister twice—from 2003 to 2006 under President Olusegun Obasanjo and from 2011 to 2015 under Goodluck Jonathan—she has also been a development economist and a managing director at the World Bank.
She has previously outlined her goal of raising Africa’s share of world trade from the current level of 3%, and also of working towards the relaxation of coronavirus-induced export restrictions. She hopes that any such restrictions are “temporary, transparent and proportionate so we make sure they do not harm other members”.
Her appointment has been some time coming. In October, the WTO was all set to announce her as the new DG when the US suddenly rejected what appeared to be a consensus decision. Consequently, the General Counsel was postponed the announcement of a new DG until after the US Presidential election.
The US put its weight behind South Korean trade minister Yoo Myung-hee, who is known for renegotiating a trade deal with the US and for presiding over trade agreements with Singapore and the Association of Southeast Asian Nations (ASEAN). In fact, Trump said appointing the Nigerian candidate would be “mistake”.
Prior to Trump’s exit from the White House, US trade representative Robert E. Lighthizer told Financial Times that the Nigerian candidate has “no experience”, adding, “We need a person who actually knows trade, not somebody from the World Bank who does development.”
Okonjo-Iweala rejected Lighthizer’s comments, saying, “When you’re a woman of colour in a leadership position—a woman, first of all, and then of colour—these comments are not too surprising,” adding, “My résumé speaks for itself.”
However, two weeks ago Yoo withdrew her candidacy after “close consultation with the United States” and Biden offered his approval for Okonjo-Iweala.
In fact, the US representative to the WTO expressed hope that Okonjo-Iweala could be a “constructive partner”, and China offered her its “full support”. Meanwhile, European Union (EU) Trade Commissioner Valdis Dombrovskis called on the Nigerian to facilitate “much-needed reform of the institution”.
Under Trump, the US undercut the efforts of the WTO on numerous occasions. Since December 2019, the US has obstructed the WTO’s trade dispute resolution body by blocking the appointment of judges to the organisation’s top court, the Appellate Body. In the absence of a three-judge quorum, the body has too few officials to rule on major trade disputes.
Trump also accused the body of treating America unfairly and of having strayed from its purpose of liberalising and protecting markets. He further argued that China’s entry into the organisation in 2001 has led to millions of American job losses.
At this stage, despite the US being led by Biden now, it is not clear if or when the US will remove the hurdles Trump placed.
Okonjo-Iweala will replace Robert Azevêdo, who unexpectedly resigned last May.
Okonjo-Iweala Appointed as New WTO Director-General After Months of US Opposition
Her appointment was facilitated by the fact that South Korean candidate Yoo Myung-hee withdrew from the race two weeks ago. Likewise, Biden approved the Nigerian’s candidacy, unlike Trump.
February 16, 2021
IMAGE SOURCE: FABRICE COFFRINI / AFP VIA GETTY IMAGESNewly appointed Director-General of the World Trade Organisation Ngozi Okonjo-Iweala