As global trade tensions continue to escalate, the World Trade Organisation (WTO) is warning of a potential economic disaster. Director-General Ngozi Okonjo-Iweala has called for urgent collaboration and reforms to prevent a catastrophic fragmentation of the global economy.
Speaking at the World Economic Forum in Davos, Switzerland, Okonjo-Iweala emphasized the need for policymakers to consider the long-term consequences of their actions. “The stakes are high, and the risks are real,” she cautioned. “We must work together to prevent a breakdown in global trade relations.”
Okonjo-Iweala highlighted the critical role that artificial intelligence (AI) can play in driving global commerce. “AI has the potential to revolutionize trade, making it faster, cheaper, and more efficient,” she said. “But we must ensure that the benefits of AI are shared equitably among all nations.”
The WTO Director-General also warned of the dangers of economic fragmentation, citing research that suggests a divided global economy could lead to a 6.4% decline in global GDP. “This is a recipe for disaster,” she said. “We must work together to prevent a fragmentation of the global economy.”
Okonjo-Iweala’s call to action was echoed by ministers from around the world, who emphasized the importance of the WTO in maintaining a rules-based trading system. “The WTO is the foundation upon which global trade is built,” said one minister. “We must work together to strengthen and modernize the WTO.”
As the global economy navigates uncertain times, the WTO’s warning serves as a timely reminder of the need for international cooperation and collective action. By working together, nations can prevent a catastrophic fragmentation of the global economy and ensure a brighter future for all.
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