(Geneva) The director-general of the World Trade Organization (WTO) said on Tuesday that global trade was facing difficult times, with rising protectionism.
Nigerian WTO Director-General Ngozi Okonjo-Iweala said the future of trade lies in services, digitalisation and the green economy, in the WTO’s annual report.
“We are living in challenging times for global trade. Against a backdrop of geopolitical tensions and the 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.
International trade, she said, could also “strengthen global food security and accelerate progress toward net-zero emissions” of greenhouse gases.
The WTO’s annual report looks back at the Geneva-based economic institution’s activities in 2023 and early 2024.
The 13e The WTO ministerial conference was held in Abu Dhabi in late February and continued through early March, ending with a temporary extension of a moratorium on e-commerce but no agreement on agriculture and fisheries, highlighting deep divisions among states amid geopolitical tensions and economic headwinds threatening global trade.
Hopes for digital commerce
Mme Okonjo-Iweala said merchandise trade volumes fell 1.2 percent last year, after growing 3.0 percent 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 post-pandemic surge in tourism.
The report said the total value of trade in goods and services reached $30.4 trillion last year, near record levels.
Digital commerce is growing much faster than traditional trade. “The future of commerce is services, digital and green,” said Mr.me Okonjo-Iweala, former Nigerian Minister of Finance and Foreign Affairs.
Efforts to craft global rules on digital trade advanced Friday as dozens of countries concluded negotiations on a draft text, but more talks are likely to be needed as the United States and several other countries remain at odds.
Online consumer protection, digitalisation of customs procedures and recognition of electronic signatures are among the measures included in the text aimed at promoting and facilitating digital transactions.
European Union Trade Commissioner Valdis Dombrovskis called the text “historic”, saying countries had “negotiated the first global rules on digital trade”.
“This will facilitate electronic transactions, stimulate innovation and help integrate developing countries into the digital economy,” he said.