The head of the World Trade Organisation stated on Tuesday that global business was in trouble, with protectionism on the rise.
In the WTO’s annual report, chairman Ngozi Okonjo-Iweala stated that the future of trade lies in services, digitalisation, and the green economy.
“These are troubling times for global trade. Amid geopolitical tensions and the backdrop of the climate crisis, we see increased protectionism and unilateral policy measures,” she said.
“After years of talk of decoupling, trade may be starting to fragment along geopolitical lines.”
Opportunities still exist, she noted, citing the possibility for growth and employment creation through digitalisation.
She also stated that trade may “enhance global food security and accelerate the push towards net-zero emissions”.
The WTO’s annual report reviewed the Geneva-based organisation’s actions in 2023 and early 2024.
The WTO’s 13th ministerial conference was held in Abu Dhabi in late February and early March, culminating in a temporary extension of an e-commerce moratorium but no agreements on agriculture and fisheries, highlighting the sharp divisions among members amid geopolitical tensions and economic headwinds threatening global commerce.
According to Okonjo-Iweala, goods trade volumes decreased by 1.2 percent in 2018 after increasing by 3.0 percent the previous year due to inflation and high energy prices in several nations.
The decline was somewhat offset by robust growth in services trade, which climbed by 9% in value terms, aided by a post-pandemic tourism boom.
According to the research, the overall value of global goods and commercial services trade was $30.4 trillion last year, close to record highs.
Digital commerce is expanding far quicker than its analogue equivalent.
“The future of trade is services, digital, and green,” said Okonjo-Iweala, Nigeria’s former finance and foreign minister.
Efforts to develop global digital trade rules progressed Friday when dozens of nations completed negotiations with a draft text, but additional talks are likely to be required because the United States and many other countries are still not on board.
Protections for online customers, digitisation of customs procedures, and recognition of electronic signatures are among the steps outlined in the document to promote and facilitate digital transactions.
The European Union’s trade head, Valdis Dombrovskis, described the text as “historic,” noting that countries had “negotiated the first global rules on digital trade.”
“This will facilitate e-transactions, boost innovation, and integrate developing countries into the digital economy,” he told reporters.