Nigeria’s former Finance Minister, Ngozi Okonjo-Iweala, is about to become the first woman and the first African to lead the World Trade Organization (WTO) after her opponent, South Korea’s candidate pulled out of the race for the job.
Yoo Myung-hee, the South Korean trade minister, announced her decision to withdraw in a televised briefing on Friday, February 5, 2021.
Okonjo-Iweala, an economist, already enjoyed broad support from WTO members, including the European Union, China, Japan and Australia.
However, the United States, under the Trump administration, had favored Yoo, complicating the decision-making process since the selection of a new leader requires all WTO members to agree. Okonjo-Iweala’s formal selection may have to wait until after the United States appoints a new trade representative.
Yoo said that her decision had been reached after “close consultation” with the United States. The WTO had been without a leader for too long, she added.
The Geneva-based body, tasked with promoting free trade, has been without a permanent director general since Roberto Azevêdo stepped down a year earlier than planned at the end of August after the WTO was caught in the middle of an escalating trade fight between the United States and China.
The Trump administration was highly critical of the WTO and undermined its standing by imposing tariffs on Canada, Mexico, China and the European Union. Okonjo-Iweala will thus assume control of an organization that has struggled to prevent trade spats between its members.
While US President, Joe Biden, has already taken steps to restore support for multilateral institutions, he is expected to proceed with caution when it comes to signing any new trade deals.
