WTO chief warns of continued global closure

The more and more in global chains It will last longer than previously thought and may continue to undermine developing countries, said a World Trade Organization official.

Ngozi Okonjo-Iweala, a former World Bank vice-chancellor who recently took over the post-WTO director-general, told people in Paris that rising prices put the risk of squeezing poor countries even after other economic crises were resolved.

“We thought the disruption of food supply would be temporary,” Okonjo-Iweala told a conference organized by Jeune Afrique Media Group. “We’re still thinking, but it’s taking longer to resolve than we expect – either by the end of this year or maybe next year.”

Amid concerns that small companies are being pushed out of business networks due to incompatibility, the WTO will convene a meeting of business leaders, cabinet and trade experts in March to discuss how to reduce recurring closures, Okonjo-Iweala said.

In October last year Okonjo-Iweala adauza FT that the pressure on the chains should continue for “several months”, and in November said the problems should be “passer-by”And abolished at the end of 2022. But Covid’s Omicron, which has shut down China’s travel and travel services and banned international travel – forcing a suspension of the WTO ministerial meeting in December – has set back hopes of a return. on normality.

Delay of goods to West Coast ports in the US remain at a high level, despite Joe Biden’s management trying to reduce the disruption, as well as shipping costs still very high.

Okonjo-Iweala said the difficulties that led to the delay in goods should be reduced this year, and that the volume of goods will come quickly.

“Demand for goods has to go down, mainly due to rising prices and declining economic support for the epidemic,” he said. “Shipping companies are making unprecedented profits and some are investing heavily.”

But he added: “It is also possible that there are ongoing construction problems. It is possible that problems in the ports of the west coast of the US, for example, are also due to operational difficulties and difficulties.

“In addition, there is a crisis in developing countries at the end of the maritime era,” he said, expressing concern that poor countries with small businesses are at risk of losing their jobs if travel costs rise. .

The March conference aims to bring together shipping companies, goods and services and ministers and experts from international organizations to see what can be done to improve the system. The conference coincided with the WTO meeting last year, which called on pharmaceutical companies, epidemics, health professionals and campaigners to speed up vaccination and delivery.

The WTO cabinet meeting, which was supposed to discuss funding for fisheries and changes to Covid’s medical policy, has been suspended until the end of this year.