The World Trade Organization’s (WTO) Director-General reports that global trade is not meeting expectations.
Despite overcoming the pandemic, it faces economic hurdles and a trend towards protectionism.
“The global trade system requires urgent reform to fulfill its mission,” emphasized Ngozi Okonjo-Iweala in Abu Dhabi.
Here, trade ministers are gathering for the WTO’s 13th biennial conference, underscoring the stress in international commerce.
She pointed out that most major economies are seeing weak demand, except for the USA and India, which are faring well.
Wars and environmental issues, like droughts affecting the Panama Canal, are disrupting supply chains.
Okonjo-Iweala highlighted the bleak outlook on economic prospects.
She doubts the WTO’s earlier growth forecasts for 2023 will be achieved, especially in light of recent global tensions. The organization is revising its predictions.
The geopolitical clash between the United States and China has strained the WTO. Their disputes over technology and trade policies have tested the institution’s resilience.
Trump’s Impact
The Trump administration disrupted the WTO‘s appellate body by halting appointments, a stance Joe Biden has maintained.
Trump also threatened a complete withdrawal from the WTO, raising concerns about the future of international trade cooperation.
At the MC13 conference, Okonjo-Iweala sensed renewed enthusiasm.
She celebrated the addition of Timor-Leste and Comoros as new WTO members, marking the organization’s growth since Afghanistan joined in 2016.
She also noted progress on the anti-fishery subsidies agreement, with 70 countries ratifying it.
A second agreement is under negotiation, vital for the livelihood of 260 million people dependent on increasingly exploited oceans.
This scenario underscores the critical need for reform and cooperation in global trade, highlighting its significance for economic stability and the well-being of nations worldwide.