World Trade Organisation (WTO) Director-General Ngozi Okonjo-Iweala has cautioned that the global trading system is unlikely to return to its pre-disruption state, urging nations and businesses to plan for a future defined by uncertainty, diversification, and resilience.
Speaking at the World Economic Forum in Davos on Friday, Okonjo-Iweala highlighted the risks of over-reliance on a limited number of major economies, noting that such dependence has left global trade particularly vulnerable to shocks from tariffs, geopolitical tensions, and supply chain disruptions.
“If we are over-dependent on the US for markets, from the trade front, over-dependent on China for critical supplies, we need to diversify.
“Our members should diversify their trade,” she said, referencing efforts by countries like Canada, which is actively seeking to broaden its trading relationships.
When asked whether current trade tensions—driven by aggressive tariff policies and strained alliances might represent only a temporary phase, Okonjo-Iweala was clear that the changes were likely permanent.
“I don’t think we’ll go back to where we were. If I were a business or a policymaker, I would be planning against a world that is not going to go back to where it was, a world with built-in uncertainties.
”I’d be thinking about how to make my business or country resilient, strengthening my region and building capacity locally.
”Things will not revert fully, but hopefully we will reach a more stable state in the future, ” she said.
Her remarks underscore a growing consensus among global trade leaders that diversification, regional resilience, and proactive planning are essential strategies for navigating the evolving economic landscape.
