The World Trade Organisation (WTO) affirmed that trade has played a crucial role in narrowing the income gap between economies since the WTO was established 30 years ago, emphasising the need for a comprehensive strategy that integrates open trade with supportive domestic policies.
In the foreword to the 2024 edition of the WTO’s World Trade Report, published in Geneva on Monday, Director-General Ngozi Okonjo-Iweala said that the biggest takeaway from the report is its reaffirmation of trade's transformative role in reducing poverty and creating shared prosperity.
Examining how international trade has contributed to making the global economy more inclusive, the report showcases data establishing a strong link between trade participation and the narrowing of income disparities among economies. From 1996 to 2021, a high trade share in GDP is significantly correlated to faster growth in low- and middle-income economies, converging to the level of GDP per capita in high-income economies.
The report unveiled that membership in the WTO and its predecessor the General Agreement on Tariffs and Trade (GATT) has boosted trade between members by an average of 140 percent, while economies that undergo rigorous WTO accession negotiations are shown to grow 1.5 percentage points faster during their accession period.
“Less trade will not promote inclusiveness, nor will trade alone,”
WTO Chief Economist Ralph Ossa said.
“True inclusiveness demands a comprehensive strategy — one that integrates open trade with supportive domestic policies and robust international cooperation.”
News Source: Emirates News Agency
