Global trading system faces worst disruption in 80 years: WTO chief

The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has emphasized that the world is facing the biggest disruption to international trade rules in eight decades, with tariffs increasingly undermining the predictability of the global trading system.“The share of global trade done on WTO terms has fallen to 72% and could fall further, amid the largest disruption to global trade rules, unprecedented in the past 80 years,” Okonjo-Iweala noted at the start of her second term leading the Geneva-based trade body,according to information.She further stated that confidence in the system has been shaken. “It’s not surprising that some would question the global trading system and its predictability,” she remarked, while also stressing that there are still visible signs of resilience within global trade flows.
The decline of the WTO’s framework began accelerating after the introduction of tariffs during U.S. President Donald Trump’s administration. WTO data indicates that the share of global trade conducted under the organization’s Most-Favored-Nation (MFN) terms has declined from around 80% to just 72%. The MFN principle requires WTO members to grant equal trade treatment to all partners, ensuring fairness and consistency.Okonjo-Iweala emphasized that protecting and strengthening the global trading system is essential, particularly as geopolitical tensions and protectionist policies risk further fragmenting global commerce.

(Business Correspondent)