Okonjo-Iweala Wades Into US-China Trade War, Sees A Problem In WTO

Aspiring Director-General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala, has waded into the trade war between the United States and China as she speaks of her plan when she becomes the leader of the global trade organisation.

The U.S and China have been at loggerheads over the 'developing status' that gives some countries preferential trade treatment, and Okonjo-Iweala revealed her solution to the confrontation.

According to the former Finance Minister of Nigeria, she is willing to listen to both parties argument, act as a mediator to broker deals, but ensure she makes them understands that it's in their best interest to align in order for WTO to survive as both countries are the two largest economies in the world.

What's The 'Status' Problem Between US And China

The World Trade Organisation allows member-countries to determine their status. Nearly two-thirds of the organization’s 164 members claim to be a developing nation. Despite its economic and infrastructural development, China also has been claiming the developing nation status, a claim the United States frown at.

As a member of WTO, there are benefits of being a developing nation. Part of the preferential treatment includes longer time horizons to carry out trade agreements. But US President, Donald Trump, believes developed countries like China are taking advantage of such rule, and he wants the rule changed. Trump said all developed countries must identify as developed nations, and not developing countries - China disagrees.

Reacting to the tussle, Okonjo-Iweala said discussion about what developed and developing nations gain from WTO must be held because “the developed country members feel they have borne the burden of liberalization and maybe the advanced developing countries should bear more. The least developed countries feel they could benefit more from the system”.

“The US and China are the two largest economies in the world. I know that they both believe in trade. Both China and the US have an interest in seeing the WTO go on,” She told Politico, adding that, “They want people to listen, they want someone who can listen carefully to what their issues are, what it is they want to see improved in the WTO.”

WTO Has A Problem Okonjo-Iweala Want To Fix

According to Okonjo-Iweala, WTO isn't up to date with new emerging trends, and she thinks that must change. Okonjo-Iweala said WTO is behind the 21st-century trends that needs to be incorporated into the global trade organisation. She disclosed that some rules of WTO are also outdated.

“The WTO needs to be brought up to the 21st century. Some of the rules are outdated and they don’t reflect the significant developments in the global economy." Okonjo-Iweala stated. According to her, “Issues such as the digital economy, competition policy, investment, climate change and environment, they all need to be addressed."