Global Trade Faces Unprecedented Disruption
The World Trade Organization (WTO) notes that only 72% of global trade occurs under its terms. This significant decline, the largest in 80 years, raises questions about international trade predictability and stability. WTO Director-General Ngozi Okonjo-Iweala highlights challenges and resilience amidst these disruptions.
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The share of global trade conducted under World Trade Organization (WTO) terms has dropped to 72% and may decrease further, according to the Director-General of the WTO. This marks the largest upheaval in the international trading system in eight decades.
"We are witnessing an unparalleled disruption to global trade rules," stated Ngozi Okonjo-Iweala in an interview with Reuters, coinciding with the beginning of her second term leading the Geneva-based organization.
Since U.S. tariffs introduced by the Trump administration, WTO data indicates a fall from around 80% of trade under the Most-Favored-Nation (MFN) terms. Okonjo-Iweala emphasized resilience but acknowledged questions surrounding the predictability of the global trading system.
(With inputs from agencies.)
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