World trade chief says global free trade is in a crisis while on visit to Japan

The head of the global trade watchdog says global free trade is facing a “crisis” as U.S. President Donald Trump disrupts world commerce with his fast-changing tariffs and other policies

TOKYO -- Global free trade is in crisis, the head of the World Trade Organization chief said Tuesday while meeting Japanese Prime Minister Shigaru Ishiba on Tuesday.

Ngozi Okonjo-Iweala, director-general of the World Trade Organization, told Ishiba that she has high expectations for Japan as a champion of open markets as U.S. President Donald Trump disrupts world commerce with his fast-changing tariffs and other policies.

“Trade is facing very challenging times right now and it is quite difficult,” she said. “We should try to use this crisis as an opportunity to solve the challenges we have and take advantage of new trends in trade.”

Japan, as “a champion of the multilateral trading system” must help maintain, strengthen and reform the WTO, the Japanese Foreign Ministry cited her as saying.

Later Tuesday, the WTO chief met with Japanese Foreign Minister Takeshi Iwaya and issued a joint statement, saying that “in a time of uncertainty and disruption, the value of the multilateral trading system is unquestionable.” Japan said in the same statement the current trade turmoil “would have a significant impact on the global economy and the entire multilateral trading system” and called for promoting WTO reforms, including its rule-making function, dispute settlement and monitoring of the implementation of agreements.

They met a day after the United States and China said they had agreed to slash recent sky- high tariffs for 90 days to allow time for negotiations.

Japan is among many countries yet to reach a deal with the Trump administration on hikes to U.S. tariffs, including those on autos, steel and aluminum.

The WTO played a pivotal role in past decades as the U.S. and other major economies championed the trade liberalization that facilitated the growth of global supply chains, many of which are anchored in China. By dismantling many protectionist barriers to trade, it has aided the ascent of Japan and China, and many other countries, as export manufacturing hubs.

Since taking office for a second time, Trump has prioritized higher tariffs to try to reduce U.S. imports and compel companies to locate factories in the United States, doubling down on a trade war that he launched during his first term.

Okonjo-Iweala and Ishiba agreed that WTO member countries should unite to restore the organization's capacity to address challenges.

The trade chief visited Japan to strengthen cooperation between the east Asian country and the WTO to maintain and reinforce the multilateral trading system, Japanese officials said.

She also met with Finance Minister Katsunobu Kato and Economy, Trade and Industry Minister Yoji Muto.

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Associated Press video journalist Mayuko Ono in Tokyo contributed to this report.