WTO Chief Okonjo-Iweala warns of ‘troubling times’ ahead for global trade. Discover her insights and concerns for the future.
On Tuesday, the leader of the World Trade Organisation expressed that global trade is experiencing a challenging period marked by an increase in protectionism.
In the annual report of the global trade organization, WTO chief Ngozi Okonjo-Iweala declared that services, digitalization and the green economy pave way to future trade prospects.
She said that global trade is currently experiencing challenging times due to the rise of protectionism and unilateral policy measures, which are being fueled by geopolitical tensions and the climate crisis.
Trade, which has been talked about in terms of decoupling for years now, appears to be showing signs of fragmentation based on geopolitical divisions.
She asserted that there are still opportunities, highlighting the potential for digitalisation to spur growth and enable job creation.
According to her, trading could aid in improving worldwide food security and hastening efforts towards achieving zero emissions.
The annual report of the WTO reflected on the organization’s operations in Geneva for 2023 and early 2024.
In late February, Abu Dhabi hosted the 13th ministerial conference of WTO which extended an e-commerce moratorium but did not yield any agreements on agriculture and fisheries. This showcased deep fissures among members amidst geopolitical tensions and economic challenges that jeopardize global trading activities.
Hopes for digital trade
According to Okonjo-Iweala, the previous year witnessed a decline of 1.2 percent in merchandise trade volumes following an increase of 3.0 percent the preceding year due to many countries grappling with persisting inflation and high energy costs.
A post-pandemic tourism surge fueled strong growth in the services trade, which witnessed a nine percent rise in value terms. This provided some cushion against the decline observed elsewhere.
According to the report, last year’s total trade value of goods and commercial services was almost at record highs with a whopping $30.4 trillion.
Its traditional counterpart is growing at a much slower rate than digital commerce.
“The upcoming trade trends are services, digital and green,” stated Okonjo-Iweala, the former minister of finance and foreign affairs from Nigeria.
On Friday, negotiations on the draft text for global digital trade rules made progress as numerous countries participated. However, it seems that further discussions will be required due to the United States and some other nations still not agreeing with the proposed regulations.
The document promoting and easing digital transactions includes measures such as safeguarding online consumers, modernizing customs procedures through digitization, and acknowledging the validity of electronic signatures.
The text was referred to as “historic” by Valdis Dombrovskis, the European Union trade chief. He further added that negotiations had resulted in the establishment of initial global regulations on digital commerce.
“He said that this would help in enabling e-transactions, enhancing innovation and integrating developing nations into the digital economy.”
