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TOKYO: Global free trade is in crisis, the head of the World Trade Organization chief said Tuesday while meeting Japanese Prime Minister Shigaru Ishiba on Tuesday. Ngozi Okonjo-Iweala, director-general of the World Trade Organization, told Ishiba that she has high expectations for Japan as a champion of open markets as US President Donald Trump disrupts world commerce with his fast-changing tariffs and other policies. “Trade is facing very challenging times right now and it is quite difficult,” she said. “We should try to use this crisis as an opportunity to solve the challenges we have and take advantage of new trends in trade.”
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Japan, as “a champion of the multilateral trading system” must help maintain, strengthen and reform the WTO, the Japanese Foreign Ministry cited her as saying. They met a day after the United States and China said they had agreed to slash recent sky- high tariffs for 90 days to allow time for negotiations. Japan is among many countries yet to reach a deal with the Trump administration on hikes to US tariffs, including those on autos, steel and aluminum. The WTO played a pivotal role in past decades as the US and other major economies championed the trade liberalization that facilitated the growth of global supply chains, many of which are anchored in China. By dismantling many protectionist barriers to trade, it has aided the ascent of Japan and China, and many other countries, as export manufacturing hubs. Since taking office for a second time, Trump has prioritized higher tariffs to try to reduce US imports and compel companies to locate factories in the United States, doubling down on a trade war that he launched during his first term. The two leaders agreed that WTO member countries should unite to restore the organization’s capacity to address challenges. Okonjo-Iwaela was visiting Japan to strengthen cooperation between Japan and the WTO to maintain and reinforce the multilateral trading system, Japanese officials said. She also was scheduled to meet with Foreign Minister Takeshi Iwaya, Finance Minister Katsunobu Kato and Economy, Trade and Industry Minister Yoji Muto.
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