Newscenter Media News Dr Ngozi Okonjo-Iweala, the Director General of the World Trade Organisation (WTO) on Tuesday raised the alarm that global trade was being threatened by increased protectionism and unilateral policy measure.
This is even as she disclosed that the future of trade lies in services, digitalisation and the green economy.
Okonjo-Iweala made these known in the global trade body’s annual report released on Tuesday, July 30th, 2024.
“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 do remain, she added, pointing to the potential for growth and job creation through digitalisation.
Trade, she said, could also “enhance global food security and accelerate the push towards net-zero emissions”.
The WTO’s annual report looked back at the Geneva-based organisation’s activities in 2023, and early 2024.
The WTO’s 13th ministerial conference was held in Abu Dhabi in late February and ran on into early March, ending with a temporary extension of an e-commerce moratorium but no deals on agriculture and fisheries, highlighting the sharp divisions between members amid geopolitical tensions and economic headwinds threatening global commerce.
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Okonjo-Iweala said that last year, merchandise trade volumes fell by 1.2 percent, after growing 3.0 percent the year before, as many countries dealt with the lingering effects of inflation and high energy prices.
The decline was partially offset by strong growth in services trade, which increased by nine percent in value terms, boosted by a post-pandemic tourism surge.
The report said the value of total goods and commercial services trade was $30.4 trillion last year, close to record highs.
Digital commerce is growing far faster than its traditional counterpart.
“The future of trade is services, digital, green,” said Okonjo-Iweala, the former Nigerian finance minister.
Efforts to draw up global digital trade rules advanced Friday when dozens of nations wrapped up negotiations with a draft text, but more talks will likely be necessary as the United States and several other countries are still not on board.
Protections for online consumers, digitalisation of customs procedures and recognition of electronic signatures figure among the measures laid out in the text aimed at promoting and facilitating digital transactions.
European Union trade chief Valdis Dombrovskis called the text “historic”, saying 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 said.
By: Babajide Okeowo
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