WTO Chief and Iceland’s President Discuss Global Trade, WTO Reform

On 1 July 2025, WTO Director-General Ngozi Okonjo-Iweala welcomed President of Iceland Halla Tómasdóttir to the World Trade Organization (WTO) headquarters in Geneva for a high-level meeting focused on the future of global trade, the multilateral trading system, and the urgent need for WTO reform.

Their meeting came at a time of increased volatility in global economic conditions, marked by geopolitical tensions, climate challenges, and fragmented supply chains, and underscored the need for collective action to safeguard and modernize international trade governance.

Key Themes: Reaffirming Multilateralism and Strategic Reform

Both leaders agreed that multilateralism remains essential to ensure fair and predictable trade relations, especially for smaller and developing economies. They reiterated the WTO’s critical role in ensuring transparency, stability, and equal opportunities in the global trading system.

Director-General Okonjo-Iweala emphasized:

“The multilateral trading system, anchored by the WTO, must be preserved and modernized. In an era of rising global uncertainties, we must reinforce cooperation and embrace reforms that reflect the realities of 21st-century trade.”

President Tómasdóttir responded:

“Iceland strongly supports an inclusive and effective WTO. We believe in open, rules-based trade that uplifts people and promotes sustainability. Multilateral institutions like the WTO must lead the way.”

The leaders also discussed the WTO’s reform agenda, including updates to dispute settlement mechanisms, digital trade rules, and initiatives aimed at enhancing sustainability and inclusiveness, such as fisheries subsidies and climate-resilient trade policies.

Iceland’s Role in the WTO: Small Country, Big Impact

Director-General Okonjo-Iweala commended Iceland’s active engagement and leadership within the WTO, particularly its:

• Advocacy for gender equity in trade

• Support for environmental sustainability initiatives, including ocean and fisheries protection

• Contributions to discussions on digital trade and innovation

Despite its small size, Iceland has consistently played an outsized role in multilateral forums, leveraging its voice to champion fair trade, human rights, and green development.

Okonjo-Iweala praised Iceland’s strong economic performance, noting the country's success in combining economic resilience with social equity and environmental stewardship—a model increasingly relevant for other WTO members seeking sustainable development pathways.

Global Economic Outlook and Collective Responses

The meeting also touched on the broader state of the world economy, with both leaders acknowledging challenges posed by:

• Persistent supply chain disruptions

• Trade fragmentation and rising protectionism

• The need for trade to support post-pandemic recovery, especially for least-developed countries

• Climate adaptation and the transition to green economies

President Tómasdóttir emphasized Iceland’s readiness to work with the WTO and other partners to shape trade policies that are not only economically beneficial but also socially just and environmentally sustainable.

Shared Commitment to Inclusive Trade

A key takeaway from the meeting was a shared vision of inclusive trade—where trade becomes a platform for empowering women, youth, small businesses, and underrepresented regions. Both leaders agreed that WTO reform must be centered on inclusivity, transparency, and results-oriented policymaking.

They also noted the importance of greater participation by small states and island economies in shaping global trade rules. Iceland, as a small and open economy, exemplifies how countries with limited size can still influence trade debates through principled leadership and coalition-building.

Looking Ahead: WTO Reform and Ministerial Priorities

The meeting sets the stage for upcoming discussions at the 14th WTO Ministerial Conference, where institutional reform, sustainability, and digital trade are expected to be high on the agenda. President Tómasdóttir’s visit also reflects Iceland’s growing diplomatic engagement in global governance and trade diplomacy.

The WTO continues to work with its members to develop forward-looking trade rules and strengthen its role as a platform for addressing emerging global challenges, including:

• Climate change and trade

• Digital economy regulation

• Inclusive trade development

• Resilient supply chains

A Model of Constructive Diplomacy

The meeting between DG Okonjo-Iweala and President Tómasdóttir highlighted the value of strong bilateral engagement within multilateral institutions. As the world navigates a period of trade uncertainty and transformation, Iceland and the WTO reaffirmed their commitment to working together to ensure that global trade remains open, fair, and beneficial for all.