|
||
|
TWN
Info Service on WTO and Trade Issues (Jan26/06) Geneva, 21 Jan (D. Ravi Kanth) — The Director-General of the World Trade Organization (WTO) on 20 January called for maintaining “steady nerves” as the global trade order appears to be increasingly destabilized by the United States, which has threatened to impose a 10% tariff on several European countries unless they support Washington’s plan to annex Greenland, a semi-autonomous territory of Denmark. “You’ve got to remember you’re in a bit of a game of poker, and so you have to be smart, sensible, keep your nerves steady so you can formulate the best strategy and approach to deal with the situation,” WTO DG Ngozi Okonjo-Iweala told CNN’s Richard Quest on the sidelines of the World Economic Forum (WEF) summit in Davos on 20 January. European leaders at the WEF have signaled that they are prepared to respond with retaliatory measures if US President Donald Trump follows through on his threat to impose a 10% tariff – effective 1 February – on Germany, France, Denmark, Sweden, Norway, The Netherlands, the United Kingdom and Finland unless they align with his Greenland annexation proposal. The tariff would reportedly rise to 25% from 1 June. Despite escalating tensions, Ms. Okonjo-Iweala likened the deepening trade rift between the US and the European Union to a “poker game,” cautioning that “getting overly excited and acting very quickly isn’t really the way to go.” Noting the parallels between her remarks and recent comments by US Treasury Secretary Scott Bessent – who urged EU members not to retaliate – the DG was asked whether she too was advising restraint. “Well, you know, but maybe this chill that I said last year hasn’t been so bad,” she replied. “You know, from chill, we were able to go to a situation in which we avoided a trade war,” she said, adding, “things are very different now.” The DG emphasized that “trade measures and trade policies and instruments are being used for non-trade issues,” noting, “That’s why I said it’s really tough. And there’s nothing you can do about that.” The WTO chief was rather blunt about the organization’s limitations: “There’s nothing the WTO can do about that because if that is the weapon de jure for the administration, then – as we’re seeing obviously with Greenland – there’s nothing more you can really do. There’s nothing we can do because it’s outside of our remit, a bit above our pay grade, if you want to put it that way. You know, so using trade measures for geopolitical issues is not part of what we can deal with.” Nevertheless, she pointed to the underlying resilience in the global trading system. “At the actual numbers – and I’m a numbers-driven person – we find that almost three-quarters of world trade is still going on WTO terms,” she said. “Businesses trade, not politicians,” she added, “and they’re carrying on with it because they find the rules and the stability and predictability of the system works largely.” Asked whether the WTO is continuing to engage with the US, Ms. Okonjo-Iweala confirmed: “Well, we’re engaging with the US on trade issues. Yes. So they may be doing things unilaterally, which may be outside of the WTO system – which, it’s not me, which are outside of the WTO system – but they are still part of the WTO.” Noting that the US “still find(s) some aspects of the system useful, even as they criticize it,” she underscored a foundational principle: “The thing we need to remember about the WTO is it’s made up of its members. And the members are very proud of saying it’s a member-driven organization.” Ms. Okonjo-Iweala said WTO members are actively examining “what are the key reforms that need to be done,” adding that while “the system is stable” and “has shown resilience,” it also faces “many criticisms.” She affirmed her agreement “with the US and a lot of the criticisms” it has voiced, but stressed that “they are also not the only ones with criticisms. The developing countries also have criticism(s).” +
|
||
