World trade is facing ‘difficult times’, says WTO director-general

The Director-General of the World Trade Organization (WTO) said on Tuesday (July 30) that global trade is facing challenging times, with rising protectionism. Ngozi Okonjo-Iweala also said that the future of trade lies in services, digitalization and the green economy, in the WTO’s annual report.

“We are living in challenging times for global trade. In a context of geopolitical tensions and climate crisis, we are seeing increased protectionism and unilateral decisions”she said. Opportunities remain, she added, highlighting the potential for growth and job creation through digitalization. She said international trade could also “strengthen global food security and accelerate progress towards net-zero emissions” for greenhouse gases.

The WTO’s annual report looks back at the Geneva-based economic body’s activities in 2023 and early 2024. Ngozy Okonjo-Iweala said that last year, merchandise trade volumes fell by 1.2%, after increasing by 3.0% the previous year, as many countries grappled with the lingering effects of inflation and high energy prices.

The decline was partly offset by strong growth in services trade, which rose 9% in value, driven by a surge in post-pandemic tourism. The report also found that the total value of trade in commercial goods and services totaled $30.4 trillion last year, near record levels.