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Okonjo-Iweala Warns Against Trade Divisions

The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has called for global unity to sustain economic growth, cautioning against the dangers of protectionism. Speaking during an interview with CNN’s Fareed Zakaria, she highlighted the resilience of global trade, noting that trade has reached $30.4 trillion, surpassing pre-pandemic levels despite rising protectionist measures by several nations.

Okonjo-Iweala warned that geopolitical divisions could cost the global economy 6.4% of its GDP—equivalent to $6.7 trillion. She emphasized that such fragmentation would harm everyone, likening the potential loss to erasing the economies of Japan and Korea combined. “We don’t want to see this increased fragmentation because it’s not good for anyone,” she stated, advocating for collaboration over division.

Addressing concerns about unfair trade practices and tariff threats, the former Nigerian Finance Minister urged nations to avoid retaliatory policies. Instead, she encouraged member states to seek constructive dialogue, transparency, and measured solutions through WTO mechanisms. Okonjo-Iweala also reminded leaders of the economic lessons from history, warning against a repeat of the protectionist policies that worsened the Great Depression.

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