The World Trade Organization’s (WTO) World Trade Report 2024 has highlighted the significant role trade has played in reducing income disparities among economies since the WTO’s inception 30 years ago. Officially launched in Geneva, Switzerland, during the 2024 WTO Public Forum, the report aims to enhance understanding of trade trends, policy issues, and the global trading system.
The latest report delves into the intricate connections between trade and inclusiveness within and among economies. It emphasizes that to ensure the benefits of trade reach a broader population, trade policies must be supported by suitable domestic policies.
According to WTO Director-General Dr. Ngozi Okonjo-Iweala, the report reaffirms trade’s essential function in alleviating poverty and fostering shared prosperity, countering the prevailing belief that trade and institutions like the WTO have exacerbated inequality and harmed poorer nations. She noted that while trade has been transformative, more efforts are needed to make it work effectively for those left behind in the globalization process.
The report provides evidence linking trade participation to reduced income inequality, exploring the various barriers that inhibit individuals, companies, and countries from benefiting from international trade. These barriers include high trade costs that limit access to foreign markets or affordable inputs, as well as issues related to mobility, information access, skill mismatches, and restricted financial opportunities that often prevent individuals from taking advantage of new prospects.