The concept of re-globalisation is viewed as a more effective route towards creating a global economy that benefits everyone. According to WTO Director-General Dr. Ngozi Okonjo-Iweala, re-globalisation aims to integrate more economies and communities into the global economic framework by attracting trade-oriented investments. In contrast, she argues that protectionism is not a viable method for achieving inclusiveness, as trade restrictions often result in higher production costs and can provoke retaliation from dissatisfied trading partners.
Dr. Okonjo-Iweala emphasizes the role of the WTO in facilitating international trade cooperation and highlights the potential of new regulations in areas such as investment facilitation, services, domestic regulation, and digital trade to promote the re-globalisation initiative. However, she notes that the recently released World Trade Report 2024, titled “Trade and Inclusiveness: How to Make Trade Work for All,” reveals that merely having rules for open and simplified trade is insufficient for fostering inclusiveness among economies.
According to Dr. Kishti Sen, a senior economist for the Pacific at ANZ, the current trend among countries is leaning towards protectionism to safeguard local industries and manufacturing jobs. He expresses skepticism about the possibility of achieving completely barrier-free trade, suggesting that the focus should instead be on supporting local manufacturing and ensuring fair wages.
Sen also points out that some countries have struggled with competitiveness due to high labor costs, which has led to a reevaluation of supply chains. As supply chain disruptions and potential conflicts emerge, there is a growing tendency for countries to bring manufacturing jobs back home, marking a shift from prioritizing the lowest labor costs to retaining jobs that offer fair compensation.
The theme of re-globalisation will be central to the WTO 2024 Public Forum.