China welcomes historic WTO appointment of first woman and African as director general

China said it had “full confidence” in the new boss of the World Trade Organization, after the appointment of Ngozi Okonjo-Iweala was confirmed as the trade body’s director general on Monday – the first woman and first African to hold the position.

The Chinese commerce ministry said it expected the WTO to restore its normal functions “as soon as possible and promote the WTO to play a greater role in anti-epidemic cooperation and economic recovery”.

The organisation, which regulates trade between nations, has been in a logjam since the US began openly frustrating its processes under former president Donald Trump. That included objections to Okonjo-Iweala’s appointment, which went ahead after they were withdrawn by the Biden administration.

“In the 73 years of GATT and WTO, honoured to be first woman and first African to lead. But now the real work begins. Ready to tackle the challenges of WTO. Forget business as usual,” Okonjo-Iweala said on Twitter, following the announcement.

She added that one of her priorities would be to work with members to quickly address the economic and health consequences brought about by the Covid-19 pandemic.

Okonjo-Iweala, an economist who served as Nigeria’s finance minister and a World Bank managing director, will have plenty more on her plate – not least the US-China conflict playing out at the WTO.

The US has opposed China’s designation as a developing country, which affords it special provisions in respect of WTO agreements, while a WTO panel ruled in September that US tariffs on US$200 billion worth of Chinese goods were illegal.

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The panel decision led to the US blocking the appointment of judges to the organisation’s top court – the Appellate Body that rules on trade disputes – and other retaliatory measures.

However, the US was among several countries to congratulate Okonjo-Iweala on her appointment. David Bisbee, US mission chief in Geneva, in remarks sent to Reuters, said the US was “committed to working closely with director general Okonjo-Iweala and she can count on the United States to be a constructive partner”.

China said it hoped the new WTO head would promote necessary reforms of the global trade body and enhance the authority and effectiveness of the multilateral trading system, which was facing “major challenges” as the pandemic continued to ravage economies.

Beijing said it would also take “concrete actions to support the director general in her work, so the WTO will make greater contributions to improving the global governance system and enhancing the well-being of the people of the world”.

On Monday, the WTO’s General Council agreed by consensus to select Okonjo-Iweala, 66, of Nigeria as its seventh director general, effective March 1 – an appointment that was termed historic. Her renewable term will expire on August 31, 2025.

She urged member countries to lift export restrictions that were slowing trade in key medicines and supplies to help heal economies after the devastating impact of the pandemic.

“In the short term I want to look at countries that have import restrictions of medical products, and how they can be lifted. That will be my priority,” she said, adding that “vaccine nationalism” would not work.

At a virtual briefing on Monday evening, Okonjo-Iweala said she looked to work towards expediting fisheries subsidies negotiations, e-commerce and promoting agricultural trade. She expected the WTO Ministerial Conference (MC12) – scheduled for June – to be a platform for decision-making.

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Monday’s decision follows months of uncertainty that arose when the US initially vetoed her selection and threw its support behind South Korean trade minister Yoo Myung-hee, who withdrew her candidacy on February 5. The Biden administration dropped US objections and announced Washington’s “strong support” for Okonjo-Iweala.

The process for selecting a new director general was triggered on May 14, when Roberto Azevedo announced he would be stepping down from the post one year before his mandate expired. He left office on August 31.

Myron Brilliant, the executive vice-president and head of international affairs at the US Chamber, an American business lobby group, said the US business community strongly supported the WTO, and “we are committed to backing efforts by the US and other member states, and Okonjo-Iweala to reinvigorate this vital institution”.

“We need to restore the WTO as a forum for meaningful trade negotiations and the settlement of commercial disputes. We are committed to doing our part to make that happen,” Brilliant said.

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African Union Commission chairman Moussa Faki Mahamat said Okonjo-Iweala’s confirmation, as the first woman and first African to head the WTO, was “a double historical precedent in recognition of her inspirational global leadership”.

“The AU is pleased that the global consensus in favour of her inspiring leadership prevailed,” he said.