The World Trade Organization, WTO, says bilateral and regional free trade agreements are permitted under its rules and can coexist with the multilateral trading system.
WTO Director-General, Dr Ngozi Okonjo-Iweala, stated this while responding to questions from journalists, including Trade FM, during the 2026 WTO Public Forum, where discussions centred on the future of global trade amid increasing bilateral, regional and plurilateral arrangements.
Her comments came against the backdrop of recent trade negotiations involving India, including its free trade agreement with the United Kingdom and negotiations with the European Union.
Okonjo-Iweala said WTO rules specifically provide for regional trade agreements and free trade agreements, provided they meet certain conditions, including substantially covering trade between the parties and being notified to the WTO.
She said the organisation has a dedicated unit that reviews such agreements and has found that most are largely built on WTO rules and principles.
The WTO chief said the growing number of bilateral and regional agreements also reflects countries’ efforts to diversify their trading relationships and reduce vulnerabilities arising from overdependence on particular markets or suppliers.
On concerns that the increasing use of bilateral and plurilateral agreements could undermine multilateralism, Okonjo-Iweala said the different approaches could operate side by side.
She described plurilateral agreements as part of the WTO’s negotiating tools, although they have not been used as extensively as other mechanisms.
According to her, the rapid pace of technological development, particularly in artificial intelligence and digital services, makes additional instruments for negotiating international trade increasingly important.
She disclosed that the WTO now has a new unit focused on artificial intelligence, frontier technologies and trade.
Commenting on India’s eighth Trade Policy Review, Okonjo-Iweala said the country was seeking to balance its commitment to the multilateral trading system with the need to respond to changes in the global economy.
She described India as a strong supporter of multilateralism, while noting its growing digital capabilities, including its digital payment infrastructure.
She urged India to translate its digital strengths into greater contributions to the multilateral trading system and said its participation in plurilateral negotiations could also benefit other developing countries.
On WTO reform, the Director-General said members have identified several interconnected areas requiring attention, including decision-making, development and transparency.
She declined to single out one reform priority, arguing that addressing only one area could leave other members’ concerns unresolved.
Okonjo-Iweala also warned that global trade was facing significant pressure, describing the current situation as one of “global trade turbulence”, with multilateralism weakened and trade rules under stress.
She said action was needed to safeguard the trading system, noting that 72 per cent of world goods trade still takes place on WTO terms.
According to her, further erosion of the system could particularly affect developing countries by reducing the predictability businesses need to trade and operate internationally, potentially resulting in significant economic losses.
WTO Urges Africa to Add Value to Agricultural Exports
Turning to Africa’s trade prospects, Okonjo-Iweala urged countries on the continent, including Nigeria, to move beyond exporting raw commodities and focus on adding value to agricultural products.
She said African exporters must also ensure that their products meet the standards required in destination markets, particularly sanitary and phytosanitary measures and technical requirements.
The WTO chief said the organisation provides agreements and platforms that allow exporters and governments to access information on trade measures and import requirements imposed by different countries.
She urged exporters to use the available information before shipping their products to ensure compliance with destination-market requirements.
Okonjo-Iweala also highlighted the importance of capacity building, saying the WTO could work with African countries and industries to improve their ability to meet international standards and expand their access to global markets.
She said this was particularly important for Nigerian industries seeking to transform locally produced raw materials into finished products for export.
WTO Supports Women-Led Businesses in Nigeria
Okonjo-Iweala also disclosed that the WTO is supporting women-led businesses in developing countries to expand their operations and gain access to international markets through its digital trade initiatives.
She said women who export generally earn significantly more than those whose businesses remain limited to domestic markets, making support for female exporters important to economic growth.
Nigeria is among the countries selected for the initiative, with more than 100 women-led businesses chosen to receive support.
According to the WTO chief, beneficiaries receive market advice, access to finance and grants ranging from 5,000 to 30,000 dollars, depending on the size and stage of their businesses.
She said the initiative is designed to help women scale existing businesses, launch new ventures and access international markets.
Okonjo-Iweala added that the supported businesses are also creating jobs, with beneficiaries generating an average of 13 jobs each, more than half of which are going to women.
She said the WTO would continue supporting the initiative as long as resources remain available to empower more women exporters and strengthen their participation in international trade.
