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2026-09-15 17:56:09
[WTO Calls for Trade Rule Reform, Warns of Fragmentation Risks] ⑴ The World Trade Organization (WTO) on Tuesday urged member countries to reform global trade rules or risk trade fragmentation, which could significantly reduce economic output and hit poorer countries the hardest. ⑵ In its annual report, the organization noted that existing trade rules are struggling to keep pace with changing economic landscapes, the rise of industrial policies, the development of digital trade, and escalating political tensions between major powers. ⑶ WTO economists simulated a scenario where the world fragments into competing geopolitical blocs, finding that by 2050, global GDP would be about 5% lower than normal, and exports would decrease by about 19%. ⑷ In a more severe scenario, where multilateral cooperation collapses and is replaced by fragmented free trade agreements, global GDP would decline by about 7%, and exports would decrease by nearly 27%. ⑸ In contrast, the report noted that strengthened multilateral cooperation could increase global GDP by about 3% and exports by nearly 18%. ⑹ Least developed countries would benefit most from closer cooperation but could also suffer the greatest losses from global fragmentation.
