World Trade Organization Director-General Ngozi Okonjo-Iweala has expressed concern about global economic vulnerability. She warns that excessive reliance on United States markets creates systemic risks. Many nations depend too heavily on American consumer demand.
The former World Bank managing director addressed this issue at the CNN Global Perspectives conference. She highlighted how tariffs under the Trump administration caused major disruption. This represents the most significant trade disturbance in eight decades.
Declining Trade Efficiency
Okonjo-Iweala cited evidence of weakening trade frameworks. “Most Favored Nation trade decreased from 80% to 72%,” she noted. This substantial drop reveals growing fractures in global commerce systems.
Interdependence Versus Over-Dependence
The WTO chief made a crucial distinction between healthy interdependence and risky over-dependence. “The system was built for mutual reliance,” she emphasized. “Not for dangerous concentration of market dependencies.”
Okonjo-Iweala identified two critical vulnerabilities. Many nations rely overwhelmingly on US market consumption. Simultaneously, they depend excessively on Chinese manufacturing for essential supplies.
Call for Economic Diversification
The Nigerian economist urged strategic diversification. “This is a wake-up call,” she declared. Nations must broaden their sources of both demand and supply chains. Developing alternative trade partnerships increases economic resilience.
Despite current challenges, Okonjo-Iweala recognized trade’s historic benefits. The global system has delivered widespread prosperity for 80 years. Balanced interdependence remains key to continued economic success worldwide.
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