WTO Chief Reports Largest Trade Shocks in 80 Years

According to her, the key pressures include tariff measures by the U.S. administration under President Donald Trump, retaliatory and independent actions by other countries, as well as the closure of the Strait of Hormuz.

"The global trading system is facing the most significant shocks in the last 80 years. We see the impact of U.S. tariff measures, and other member states are also taking various actions," said the WTO chief.

Okonjo-Iweala expressed particular concern about the situation around the Strait of Hormuz. She noted that about one-fifth of the world's energy supplies pass through this route, making it critically important for global trade, especially for East Asian countries.

"This greatly impacts global trade. One-fifth of all global energy supplies go through the Strait of Hormuz, making it especially important, primarily for East Asia," she noted.

The WTO chief also linked the current disruptions to the organization's insufficient adaptation to changes in the global economy. According to her, the WTO system requires reform, as the current decision-making mechanisms, including the consensus principle, slow the organization's response to new challenges.

However, Okonjo-Iweala emphasized that despite the crisis phenomena, about three-quarters of world trade still operates based on WTO principles.