WTO Chief: Global trade system faces uncertainty amid changes

She highlighted that the multilateral trade system has irrevocably shifted, and that nations must now focus on how to adapt and reform the system for the future.

"The world order and multilateral system we used to know has irrevocably changed. We will not get it back. We must look to the future," Okonjo-Iweala stated during her speech to delegates. This remark underscored the significant challenges that the global trading system faces in the current geopolitical climate.

Despite this, Okonjo-Iweala pointed out that 72% of global trade still operates under WTO rules. She also acknowledged the growth in AI-related trade, calling it a promising development in the otherwise uncertain environment. However, the WTO chief raised concerns about the risks stemming from the ongoing conflict in the Middle East and the impact of US tariffs on nations worldwide, which have led to considerable uncertainty in global trade.

Among the key issues she highlighted were the paralysis of the WTO's dispute settlement body and the lack of transparency in subsidy notifications. According to Okonjo-Iweala, only 64 members had filed subsidy notifications for 2025, leaving 102 members who had not complied. This lack of transparency, she argued, breeds mistrust and unfair practices, which further hinders the ability of WTO members to agree on new rules and reforms.

"Lack of transparency leads to lack of trust, and that breeds suspicions of unfairness and anti-competitive behaviors," she explained. "This leads to mistrust and holds members back from agreeing to new rules and reforms."

In a positive development, Okonjo-Iweala also invited Turkey's trade minister, Omer Bolat, to address the conference. Bolat announced that Turkey had lifted its objection to a proposal aimed at boosting investment in developing countries, which will now be incorporated into the WTO framework.

This revelation signals a step toward greater cooperation within the global trade system, despite the ongoing challenges faced by the WTO and its members. The future of the multilateral system, however, remains uncertain as countries continue to grapple with economic and geopolitical shifts. (ANI)