Global trade faces worst disruption in 80 years — Okonjo-Iweala

Global trade is experiencing its worst disruption in over 80 years, Director-General of the World Trade Organization, Ngozi Okonjo-Iweala, has warned.

She made this known on Thursday at the opening of the WTO Ministerial Conference in Yaoundé, Cameroon, where trade ministers from the organisation’s 166 member states convened for high-level talks.

The four-day conference is aimed at revitalising the global trading body amid deep divisions among member countries, stalled negotiations, and growing protectionist policies.

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The meeting is also focused on addressing disruptions linked to geopolitical tensions, particularly the ongoing conflict in the Middle East. It marks the second time the WTO’s top conference is being held in Africa, following the 2015 edition in Nairobi, Kenya.

What she’s saying

Okonjo-Iweala’s message centered on the scale of disruption facing global trade and the urgent need to adapt to a rapidly changing world order shaped by conflict, climate pressures, and technological shifts.

She noted that longstanding systems of global cooperation are under strain, with multilateralism increasingly being questioned as countries turn inward.

• “The world order and the multilateral system we used to know has irrevocably changed,” she said. “_We cannot deny the scale of the problems confronting the world today.” _

She further highlighted how geopolitical conflicts are compounding existing economic challenges, particularly in critical sectors such as energy, fertiliser, and food supply chains.

• “The scale of the problems confronting the world today, even before the conflict in the Gulf, destabilised trade in energy, fertiliser and food,” Okonjo-Iweala added.

More insights

The WTO is grappling with mounting challenges, including weakening cooperation among major economies and rising unilateral trade actions that threaten the rules-based system.

On January 7, 2026, the White House announced that Donald Trump had signed a memorandum directing the withdrawal of the United States from 66 international organisations deemed inconsistent with American interests.

While the WTO was not among them, the administration has imposed sweeping tariffs on both allies and non-allies.

• African countries have been affected, facing a baseline tariff of 10% on imports into the U.S., with higher reciprocal tariffs imposed on specific nations — including 30% for South Africa, 14% for Nigeria, and up to 50% for Lesotho.

These measures have added to global trade disruptions, with stakeholders warning that the Yaoundé conference must reach meaningful consensus to stabilise markets and restore confidence in the global trading system.

Nairametrics earlier reported that John Denton, secretary-general of the International Chamber of Commerce, cautioned that escalating tensions and supply chain disruptions could have severe economic consequences.

• “From a business perspective, this could yet become the worst industrial crisis in living memory,” Denton said, pointing to risks from energy price spikes and fertiliser shortages that could deepen food insecurity, especially across Africa.

What you should know

The WTO, established in 1995, serves as the backbone of the global trading system, setting the rules that govern how countries trade with one another and providing a platform to resolve disputes when conflicts arise.

• Beyond negotiating trade agreements, it also acts as a monitoring body, reviewing national trade policies to ensure transparency and predictability in global commerce.
• Less widely known is that the WTO operates a binding dispute settlement mechanism, often described as the ‘crown jewel’ of the system, the central pillar of the multilateral trading system, and the WTO’s unique contribution to the stability of the global economy.

However, the crown jewel has been weakened in recent years due to disagreements among major powers over its appellate body.

• Okonjo-Iweala, who assumed office in March 2021, made history as both the first African and first woman to lead the organisation.

A former Nigerian finance minister and former managing director at the World Bank, she has pushed reforms aimed at making the WTO more responsive to modern challenges, including digital trade, climate-related policies, and pandemic-related supply chain disruptions.

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