The President of the World Trade Organization, Naguzi Okondo Iyalia, said on Tuesday, during her meeting with Japanese Prime Minister Shigaro Ishiba, that global free trade is going through a crisis.
She emphasized that she is suspending great hopes for Japan as a supporter of open markets, in light of the destruction of US President Donald Trump to global trade with his quickly changing customs definitions and other policies.
“Trade is currently facing very difficult times, and it is very difficult. We have to seek to take advantage of this crisis as an opportunity to face the challenges that face us and benefit from new trends in trade,” she added.
The heroine of the commercial system
The Japanese Ministry of Foreign Affairs quoted Iyala as saying that Japan, as a “heroine of the multilateral trade system”, should help maintain, enhance and reform the World Trade Organization.
Later on Tuesday, the President of the World Trade Organization met Japanese Foreign Minister Takishi Iyaya, and issued a joint statement in which they said: “In light of the uncertainty and turmoil, there is no doubt about the value of the multilateral trade system.”
Japan said in the same statement that the current commercial turmoil “will significantly affect the global economy and the multilateral trade system,” calling for the reinforcement of the World Trade Organization reforms, including its role in setting rules, settling conflicts, and monitoring the implementation of agreements.
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Japan is among many countries that have not yet reached an agreement with the Trump administration on customs duties, including those imposed on cars, steel and aluminum.
The World Trade Organization has played a pivotal role in the past decades, and supported the United States and other major economies in the liberalization of trade, which facilitated the growth of global supply chains, many of which depend on China.
With the dismantling of many protective barriers to trade, the organization contributed to the rise of Japan and China, and many other countries, as export manufacturing centers.
