The head of the World Trade Organization (WTO) called on countries on Thursday to overhaul global trade rules, warning that the old multilateral order has “irrevocably changed” after a year of disruptions sparked by U.S. tariffs and wider geopolitical tensions.
Director-General Ngozi Okonjo-Iweala outlined the WTO’s challenges at the start of a four-day ministerial meeting in Cameroon, highlighting the paralysis of the body’s dispute-settlement mechanism, stalled decision-making, and limited transparency over national subsidies.
“The world order and multilateral system we used to know has irrevocably changed. We will not get it back … We must look to the future,” Okonjo-Iweala said.
Diplomats at the session warned that without reform, countries could begin bypassing global rules and setting their own trade regulations, risking fragmentation of the international system. The meeting comes amid the ongoing U.S.–Israel war against Iran, which has heightened global economic uncertainty, and after years of stalled WTO negotiations.
A central concern is the organization’s consensus-based decision-making model, which has repeatedly stalled due to objections from a few member states. Some delegates are calling for the WTO to allow coalitions of members to form agreements, bypassing the need for unanimous consent.
Okonjo-Iweala also noted the lack of transparency in subsidies. “Lack of transparency leads to lack of trust, and that breeds suspicions of unfairness and anti-competitive behaviours,” she said. According to the WTO chief, this contributes to a “vicious cycle” of mistrust that has slowed negotiations on reforms and new trade rules.
The United States supports structural reforms but resists agreeing to a detailed work plan. In contrast, the European Union, Britain, and China are pushing for a clearly defined roadmap for change, according to internal documents seen by Reuters.
“If we don’t achieve anything concrete, the WTO will lose its attractiveness and relevancy,” warned Swiss Ambassador Erwin Bollinger ahead of the session. UK Trade Minister Chris Bryant expressed concern over potential fragmentation. “My anxiety is if we ministers don’t get this week right, you might see a disorderly collapse of the WTO and some people writing a new rulebook,” he said.
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Several contentious issues are expected to dominate discussions. India is set to oppose U.S. efforts to extend a global ban on cross-border e-commerce duties, arguing that developing countries should retain the ability to impose such tariffs. Meanwhile, the U.S. Trade Representative, Jamieson Greer, is reportedly advocating for a permanent rather than temporary extension of the ban.
Analysts say the ministerial meeting comes at a critical juncture for global trade, as nations grapple with rising protectionism, supply chain disruptions, and the economic fallout of geopolitical crises. The inability of the WTO to adapt to these changes could undermine confidence in a rules-based trading system that has underpinned decades of global economic growth.
“Multilateral trade needs reform to reflect current realities,” said an African trade official attending the session. “If the WTO cannot modernize, we risk a patchwork of national rules that could increase costs for businesses and investors worldwide.”
The Cameroonian meeting represents the WTO’s first major ministerial gathering since the surge in global tensions, and participants are under pressure to deliver tangible results on reform. Decisions on dispute settlement, transparency, and flexible decision-making mechanisms are expected to shape the future of international trade governance.
Observers note that while global trade volumes remain robust, investor confidence depends on clear rules and predictable policy environments. Failure to reform could slow trade, disrupt supply chains, and increase friction in global markets, particularly affecting developing economies reliant on exports.
As the session unfolds, member states face a critical choice: adapt the WTO to a new world order or risk the gradual erosion of the multilateral trading system that has underpinned global economic growth for decades.
