WTO Chief calls for re-globalisation amidst trade fragmentation

In a recently published report, the World Trade Organization (WTO) has issued a stark warning about the fragility of the post-World War II international economic order. The report highlights the risks posed to global peace and prosperity as geopolitical tensions begin to affect trade flows, potentially leading to the fragmentation of trading relationships.

WTO Director-General Ngozi Okonjo-Iweala emphasized that the foundation of the past 75 years, built on increased trade and economic ties among nations, is now under threat. She stated that although the WTO is not without flaws, strengthening the global trading system is imperative, especially as an alternative of abandoning it could be far more detrimental.

WTO Chief Economist Ralph Ossa stressed the need to embrace trade rather than reject it, highlighting the concept of "re-globalization." The report argues that extending trade integration to more economies, people, and issues can improve living standards and reduce poverty. Trade openness has also been linked to reduced conflict and lower carbon emissions.

The reports comes two days after the G20 Summit convened in New Delhi, and a formal declaration was adopted with consensus by all members states and key organisations of the multi-lateral forum, of which WTO is a part of. At the summit, a Memorandum of Understanding (MoU) was signed among the governments of India, the US, Saudi Arabia, the European Union, the UAE, France, Germany, and Italy to establish the India-Middle East-Europe Economic Corridor (IMEC)

In conclusion, the report underscores the importance of trade and international cooperation in tackling the world's pressing issues, from security to inclusiveness to climate change. It advocates for a revitalized and reformed WTO to play a central role in addressing these challenges, emphasizing that the benefits of trade integration far outweigh the risks of isolationism in the modern globalized world.

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