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00:00Of course we'll have a lot of issues that you'll have to deal with and you have all of the skills to be able to make the WTO a better if you look at how much can trade deals but also arrangements and trade in general you know keep the world order safe. Can they avoid wars. Well absolutely. I mean you know back in the old days I should say countries used to go to war but trade and trade is so important now 60 percent of global GDP. So we need to have a place where disputes trade disputes between countries should be at arbitrated. And that's the WTO. I think it's the one place in the world where countries can be together come together to settle their disputes so so as to avoid trade wars. And we should then strengthen it to make better use of it. So Duckman goes How do you keep the US engaged in the WTO without it becoming too political. I believe that when I've listened to the priorities of the Biden Harris administration I believe that some of their priorities they have. With respect to trade. Trade should be about people about a better life for the middle class for labor. It should be an instrument to help us avoid inequity within countries and between countries. I think some of these objectives are what the WTO was originally set up to focus on. So I think if we keep those objectives and purpose in mind we can arrive at the method and the rules to make us deliver on those on those objectives. So I think the I'm looking very much forward to working with the administration the Biden administration to try to reform this the WTO. I know they're interested in reform and the WTO needs to be reformed and rebrand it. It needs to have some successes because it's been stagnant and paralyzed for for some time. And so if we can do these reforms this will change the WTO. And I believe the US wants that. Look the WTO has a secure area with excellent talented staff many ambassadors there who are doing good negotiations. And we need to make sure that they have some success in that. So where do you see commonality in order to actually reform the WTO. I know you spoke to a number of trade ministers this week. What did they tell you. There is a very great desire to read to reform the dispute settlement system with the appellate body. And of course I know the Biden administration still has issues with it as previous administrations. And there are some valid criticisms of the way the body functions. All the trade ministers I spoke to and they are all desirous and the ambassadors as well as well as they lead us to see a good reform of this system. So I think we can all come around that. Will it be easy. The answer is no because if it were easy it would have been done. But I think we can put together an approach and the work program that can bring everyone around the table. Doctrine goes in what would be your advice to Chinese officials as they navigate of course European anew. U.S. officials telling them that actually they're not playing fair in the world economy. Well I would. I would say that all of China the U.S. there own members of the WTO. And if we focus on using multilateralism to solve our problems we want the WTO is about providing a level playing field about transparency and so and competition. And so China is a member. And if we can all come together to strengthen multilateralism and try to solve our problems through these multilateral institutions and approaches then I think that could be a good way to begin to attack some of the issues that members like us China and all of them are worried about. Are the U.S. tariffs against Chinese imports justified in your mind or should the buy the administration get rid of them. Well you know a good DG of the WTO doesn't comment on bilateral issues like that. So but what I can tell you is that if we focusing on strengthening the WTO we can solve a lot of the problems between countries through these multilateral rules and approaches. And so it shouldn't be part and parcel of the solution. And I think that it would help if we had a strong WTO a reformed WTO that would also help China and the US. Both countries have benefited from a multilateral trading system that is fair allows competition provides a level playing field. And I think we should aim to get back there again. I know you've already talked about vaccine access and how important that is for all countries to have access how unequal do you think the world will be post pandemic and what role does trade come into that. I think that the pandemic has underlined and exacerbated some trends that were there before the pandemic. You've seen this pandemic has made us see clearly how inequality and marginalization within countries and between countries is a serious factor. I think that post pandemic we are going to see that many countries would have lost a lot of economic growth and output Tom Keene some poor countries would lose even decades of growth. We'll see poverty increase. And within countries even in the United States you see some populations are more marginalized. They are dying faster. They don't have the economic means. So post pandemic I think we need to focus even now during the pandemic. We need to focus very hard on how how can these living standards and circumstances of those who are marginalized be better. So that we can help curb inequality. Ten trade can play a very strong role in that. First of all trade can play a strong role in lift him barriers and export restrictions so that there's a free flow of goods even medical supplies on vaccines. And we don't have supply chains chain problems so we can save lives. Secondly with respect to the economy trade can also play a role. We should look for areas where we can liberalize encourage more free flow of goods whilst at the same time helping countries that want to set off some of their own industries and exports to be able to build that. I think we can do both. It's not one or the other. When you look at you know the role of the WTO and how China can actually change what we've seen the last couple of years should China give up its special rights in current and future negotiations. Francine this is a big issue for discussion and debate and resolution at the WTO. So it's not for the DG to say that their country or the others should give up one thing on the other. The issue is to recognize that you know some members feel that that that having China as a developing country creates an unlevel playing field. Others feel like China itself that look it's justified in calling itself a developing country. That's why there is an issue we need to bring it before the WTO will have members discussed with each other and find their way out so that every member can feel that the balance of rights and responsibilities within the trading system is proper. And that then they have the incentive to remain as a member of the WTO. And even for the private sector a functioning WTO that encourages competition is good for business all around the world. And that's what we want to see. But do you worry that organizations like the WTO like the G7 and even the UN or NATO risk becoming too or risk to be perceived as too anti China. I look let us say that multilateralism around the world oh these institutions you mentioned are multilateral institutions and they've been. Multilateralism has taken a blow in the past few years but particularly in the last four years. And I think we need to renew it. What is very very interesting around the world and heartening needs to hear the Biden President Biden talk about returning to multilateralism and strengthening all those institutions as a way for countries to talk to each other and solve problems. The EU the same developing countries and emerging markets many of them want a strong multilateral system not a weak one. So I think that the way to resolve issues is for countries to rally around this. Do you think WTO proceedings need to be more transparent more open to the public to regain some confidence. I WTO proceedings. You know WTO is about transparency. So they're really not that many things that are hidden. I think what the issue is is still bring the purpose of the WTO your back so that it's not just about sitting negotiating agreements for years. You know for instance the fishery subsidies negotiations which is supposed to be about sustainability of our oceans contributing to the Sustainable Development Goals 14. This negotiation is very important for our fishing stocks which is the livelihood of many small farmers and other fish and people all over the world as well as big ones. It's been going on for 20 years to agree on rules as to how not to have overfishing illegal fishing. And we need to bring it to a conclusion because this is very important for our livelihoods. So so. So this is one of the things that we need to do in keeping in front of us. Who are we negotiating for and why are we negotiating if we keep that constantly front. We will have answers.

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'Stagnant and Paralyzed' WTO Needs Reform, Rebrand: Okonjo-Iweala

Incoming World Trade Organization Director-General Ngozi Okonjo-Iweala discusses her reformation priorities, talks with the Biden administration, and impact of the global pandemic on trade and poverty. She speaks with Bloomberg's Francine Lacqua on "Bloomberg Markets." (Source: Bloomberg)

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