Dr. Ngozi Okonjo-Iweala, Director General of the World Trade Organization (WTO), has called on G20 nations to halt the imposition of new trade restrictions, warning that such measures could exacerbate global economic uncertainty. Her statement follows findings from the 31st WTO Trade Monitoring Report, revealing a significant increase in the scope of trade-restrictive measures implemented by G20 economies over the past year.
The report, released on Wednesday, highlighted that while G20 economies introduced both trade-facilitating and trade-restrictive policies, a growing tendency toward inward-looking and unilateral decisions is raising concerns. Dr. Okonjo-Iweala stressed that these actions create uncertainty, contribute to shortages, and fuel price volatility.
“The report indicates a trade-restrictive trend, which should be a cause for concern,” she remarked. “G20 economies must work to keep markets open and predictable to enable smooth trade flows and foster the certainty needed to incentivise investment and job creation.”
During the review period from mid-October 2023 to mid-October 2024, G20 economies implemented 91 trade-restrictive measures and 141 trade-facilitating measures, primarily targeting imports. The trade coverage of restrictive measures soared to $828.9 billion, compared to $246 billion in the previous report. Similarly, trade-facilitating measures rose to $1,069.6 billion, up from $318.8 billion.
The cumulative value of G20 import restrictions since 2009 reached $2.33 trillion in 2024, accounting for 12.7% of total G20 imports and 9.4% of global imports. The period also saw an average of 25.4 trade remedy investigations initiated per month, a figure nearing the record high observed in 2020.
In the services sector, G20 nations introduced 50 new measures, 40% of which were restrictive. Key areas affected included internet-enabled services, telecommunications, and commercial presence regulations.
Dr. Okonjo-Iweala is set to address the G20 Leaders’ Summit in Rio de Janeiro on November 18-19, 2024, where she plans to emphasise the importance of trade-facilitating measures in mitigating inflationary pressures and ensuring economic stability.
Meanwhile, the WTO has confirmed her sole candidacy for a second term as Director General. A special General Council meeting is scheduled for November 28-29, 2024, during which members will evaluate her vision for the organisation and make a formal decision on her reappointment.
Having taken office on March 1, 2021, Dr. Okonjo-Iweala’s current term is set to conclude on August 31, 2025. With no other nominees submitted by the November 8 deadline, her leadership continuity is expected to focus on addressing pressing global trade challenges and fostering multilateral cooperation.
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