With Roberto Azevêdo quitting a year before his second term ends in 2021, the World Trade Organisation is seeking to appoint a new Director-General. Given the trade challenges and constraints emanating from the impact of COVID-19, the WTO’s leadership for the worlds trading system is more important than ever before.
During the COVID-19 crisis, it is necessary, more than ever, to keep global trade flowing. The need is to prevent the reduction in the importance of the Sustainable Development Goals as well for which monetary, trade and fiscal policies need coherence. These have already been under strain due to unrelenting pressure from an aggressive Beijing and an impetuous Washington.
The WTO now needs to put more effort into making trading policies that are predictable so that the certainty they bring will facilitate global trade and investment. Battling protectionism and navigating the US-China trade war will be immediate challenges too; managing its engagement with the USA will be very important for the WTO.
The WTO’s report to the High-Level Political Forum points out that international trade of $24.5 trillion in 2018 was 33 per cent of global productive output. In 2019, global trade decreased by 3 per cent to $18.89 trillion while services trade grew 2 per cent to $6.03 trillion. Trade uncertainties reduced its growth by 7 per cent.
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