TOKYO โ The global landscape of free trade is currently encountering significant hurdles, as observed by the head of the World Trade Organization. This issue was raised during a meeting with Japanese Prime Minister Shigaru Ishiba. Ngozi Okonjo-Iweala, who serves as the director-general of the World Trade Organization, expressed her aspirations for Japan to act as a catalyst in supporting open markets, especially amidst the tumult caused by U.S. President Donald Trumpโs fluctuating tariffs and trade policies.
โCurrent challenges in trade are very formidable,โ Okonjo-Iweala remarked. โYet, this crisis could serve as a critical juncture to confront and address these problems and leverage emerging trends in trade.โ
Japan, known as โa staunch advocate of the multilateral trading system,โ is encouraged to assist in upholding, bolstering, and reforming the WTO, according to the Japanese Foreign Ministryโs account of Okonjo-Iwealaโs comments.
This meeting took place shortly after the U.S. and China agreed to temporarily reduce their high tariffs for 90 days to create negotiation space. Japan, however, is still amid negotiations with the Trump administration regarding heightened U.S. tariffs on several sectors including automotive, steel, and aluminum.
Historically, the WTO was instrumental in promoting trade liberalization, a stance supported by the U.S. and other major economies, which flourished through expanded global supply chains prominently based in China. The organization has been key in removing many protectionist trade barriers, helping countries like Japan and China become thriving export hubs.
Since taking office for the second time, President Trump has focused on augmenting tariffs to decrease U.S. imports and incentivize companies to establish manufacturing operations within America, intensifying a trade conflict that began in his first term.
Both leaders emphasized the necessity for WTO member countries to collaborate in revitalizing the organizationโs capability to meet current challenges. Okonjo-Iweala was in Japan to fortify cooperation with the WTO to support and enhance the multilateral trading framework, according to Japanese officials.
During her visit, she is also expected to have discussions with Japanese Foreign Minister Takeshi Iwaya, Finance Minister Katsunobu Kato, and Economy, Trade, and Industry Minister Yoji Muto.