Today's Edition
MAYS IBRAHIM (ABU DHABI)
Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, delivered a comprehensive assessment of the ongoing 13th Ministerial Conference (MC13), highlighting global trade dynamics during her address at the opening session of the Business Forum.
Hosted at the Abu Dhabi National Exhibition Centre (ADNEC), the event is jointly organised by the International Chamber of Commerce (ICC) and the WTO.
In her address, Okonjo-Iweala expressed cautious optimism regarding the progress made thus far at MC13, acknowledging persistent challenges amidst positive momentum.
The WTO Director-General underscored the pivotal role of the private sector as the primary users of the WTO system, emphasising their critical involvement in shaping multilateral trade policies and navigating uncertainties in the global market.
“Businesses are the direct users of the WTO system. You are the exporters and importers. Trade costs come out of your bottom line. Uncertainty around market access weighs on your investment choices. At this critical juncture for the multilateral trading system and for all businesses that operate across borders, your engagement and support really matter,” she said.
Reflecting on the current global economic and political landscape marked by “uncertainty” and “instability”, Okonjo-Iweala highlighted the widespread conflicts and economic implications worldwide.
However, “global economic output has held up slightly better than expected, with some major markets appearing to be on track for a soft landing,” she said, noting that prospects in many places remain “less bright”.
Despite challenges, she noted the resilience of global trade and highlighted past achievements, including notable growth in global services trade and environmental goods.
During the MC12 ministerial conference in June 2022, member nations had “remarkable success” by collaborating across geopolitical and international boundaries, according to Okonjo-Iweala.
She said that certain sectors of global trade have thrived since then, with preliminary data showing a 9% year-on-year growth in global services trade in the first few quarters of 2023, despite a contraction in goods trade. Additionally, exports of digitally delivered services and environmental goods have tripled since 2005 and 2000, respectively, reaching record highs in 2022.
She added that the Plurilateral Information Technology Agreement at the WTO has eliminated tariffs on approximately $3 trillion worth of annual trade in goods essential to the digital economy.
“Open international markets have been a vital shock absorber, helping businesses, households, and economies cope with one crisis after another.”
However, Okonjo-Iweala cautioned against emerging threats to global trade, citing shipping disruptions, slowing growth, and misconceptions surrounding trade. She also called for collective action to “reimagine globalisation”, emphasising the importance of diversification, inclusivity, and sustainability in shaping future trade dynamics. She urged the business community to support a reformed and reinvigorated WTO, emphasising the importance of cooperation on digital, green, and other future priorities.
“Reach out to your policymakers in support of a stronger WTO. Broaden your investment and sourcing decisions to bring new geographies, more micro, medium, and small enterprise suppliers, more women in trade. Make the case for trade and for cooperation on trade rule-making on digital, green, and other future priorities.”
“I always say the future of trade is green, it is digital, it is services, and it must be inclusive.”
The MC13 Business Forum convenes speakers from both the private and public sectors worldwide to share their insights on critical challenges confronting the WTO. Following the event, a summary of the private sector viewpoints will be delivered to the Chair of MC13 and the Director-General of the WTO.
