The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has warned that the global trading system is undergoing its most severe disruption in nearly eight decades but remains resilient despite the challenges.
Speaking at the Future Investment Initiative (FII9) in Riyadh, Okonjo-Iweala said that while world trade faces significant headwinds, the multilateral trading system continues to function effectively.
“The global trading system is suffering the most severe disruption in 80 years,” she said. “It’s battered, but it’s not broken.”
According to her, 72 percent of world trade still operates under the WTO’s Most-Favoured-Nation (MFN) terms. However, she cautioned that the figure could decline if reforms are not pursued collaboratively. “We don’t need to speculate because data shows the 72 percent may come down. We need to work with the U.S. on the reforms,” Okonjo-Iweala stated.
Okay News reports that the WTO chief emphasized the importance of engaging constructively with member states, including those that have taken unilateral trade actions.
She acknowledged that the United States has recently made criticisms and taken independent trade measures but insisted that such feedback should be viewed as an opportunity for progress. “We should listen to the criticism and take advantage,” she noted.
Okonjo-Iweala explained that the global trade landscape remains uneven, with the services sector growing faster than goods trade. “Services trade is going at about 4.3 percent, while goods trade is growing at about 2.4 percent this year,” she disclosed.
She also highlighted the rising role of digital and technology-driven commerce, noting that new rules governing digital trade are currently being developed. “We should be paying attention to digital trade. Rules for digital trade are ongoing right now. We need to be up to snuff,” she advised.
Okonjo-Iweala further revealed that 42 percent of traded goods are now linked to artificial intelligence (AI) products. She noted that the WTO’s Information Technology Agreement already covers about $3 trillion worth of trade.
“AI will reduce the cost of trade,” the WTO boss said, adding that embracing technological innovation and inclusive policy reforms would be vital for sustaining global trade growth.
