MENA Newswire News Desk: The World Trade Organization (WTO) has reaffirmed the critical role of international trade in reducing income disparities between economies, according to the World Trade Report 2024, published today. The report emphasizes the need for a broader strategy that combines open trade with supportive domestic policies to promote inclusiveness and global economic growth. In the foreword to the report, WTO Director-General Ngozi Okonjo-Iweala highlighted trade’s transformative impact on poverty reduction and shared prosperity over the last 30 years. She emphasized that the report underscores the direct link between trade participation and economic inclusiveness.
The report provides compelling data on how international trade has contributed to narrowing income gaps. From 1996 to 2021, economies with higher trade shares in GDP have experienced significantly faster growth, particularly among low- and middle-income countries. These economies have seen their per capita GDP converge with that of higher-income nations. According to the report, membership in the WTO and its predecessor, the General Agreement on Tariffs and Trade (GATT), has increased trade among members by an average of 140 percent. Furthermore, countries undergoing WTO accession negotiations are shown to grow 1.5 percentage points faster during the negotiation period.
WTO Chief Economist Ralph Ossa stated that while open trade is essential for inclusiveness, it alone is not enough. “True inclusiveness requires a comprehensive strategy that integrates open trade with effective domestic policies and strong international cooperation,” Ossa said. The report highlights that less trade will not lead to inclusiveness. Instead, a global approach that includes trade liberalization, domestic reforms, and international collaboration is needed to sustain economic growth and prosperity for all. The WTO’s findings reinforce the organization’s call for coordinated global efforts to harness the benefits of trade while ensuring fair and inclusive economic participation.