INTERVIEW: WTO Chief Urges Japan to Lead Rule Reform

Tokyo, May 19 (Jiji Press)–Japan should take the initiative in reforming World Trade Organization rules to address the challenges of the 21st century, WTO Director-General Ngozi Okonjo-Iweala said in an interview with Jiji Press in Tokyo on Monday. “Japan should play an active role” in reforms, Okonjo-Iweala said, because the country is an “important middle power.” She added, “I would like to see a reform of WTO rules…to be fit for the 21st century.” The director-general said that reaching consensus agreements among the 166 WTO member economies is becoming increasingly difficult, adding that striking “plurilateral” agreements, which are negotiated between a subset of like-minded countries, and later expanding such deals to other WTO members would become more common in the future. At a WTO ministerial meeting in Cameroon in late March, the global trade body failed to produce a consensus agreement on extending tariff exemptions for e-commerce. However, a group of countries co-chaired by Japan agreed on extending the levy moratorium and are encouraging other WTO members to join. Okonjo-Iweala expressed disappointment over the failure to reach an agreement, but said that efforts toward a comprehensive resolution are continuing. She described plurilateral agreements as “the new way of doing business at the WTO,” and said such methods could be utilized alongside the principle of requiring consensus for agreements on global issues such as measures against infectious diseases. The director-general raised concerns about possible global trade disruptions caused by surging crude oil prices stemming from the war in Iran. Japan, highly reliant on oil shipments passing through the Strait of Hormuz, a key waterway effectively closed by Iran, will suffer “a very severe impact if the oil price keeps rising,” she said, stressing the need for diversifying procurement. “Global trade is going through some of the biggest disruptions in 80 years, and these are very difficult times,” Okonjo-Iweala said, mentioning U.S. President Donald Trump’s high tariffs. Nevertheless, Global goods trade increased 4.6 pct in 2025 from the previous year, significantly outpacing initial expectations, according to WTO data. She attributed this growth to last-minute demand ahead of the tariffs as well as trade in artificial intelligence-related goods, saying that the AI boom “overcame the impact of the tariffs.” END [Copyright The Jiji Press, Ltd.]