The World Trade Organization’s World Trade Report 2024 highlights the pivotal role of trade in reducing income disparities between economies since the WTO’s inception 30 years ago. The report was launched in Geneva, Switzerland, during the 2024 WTO Public Forum.
The annual publication aims to enhance understanding of trade trends, policy issues, and the multilateral trading system. This year’s report delves into the intricate connections between trade and inclusivity within and across economies. It emphasizes the necessity for trade policies to be paired with suitable domestic policies to ensure that trade benefits are more widely shared.
WTO Director-General Dr. Ngozi Okonjo-Iweala noted that a key takeaway from the report is the acknowledgment of trade’s vital impact on alleviating poverty and fostering shared prosperity. This counters the prevailing belief that trade and institutions like the WTO have been detrimental to poor countries and have exacerbated global inequality.
Furthermore, Dr. Okonjo-Iweala highlighted that there remains significant potential to enhance the functioning of trade and the WTO to better serve economies and individuals who have been left behind in the past three decades of globalization.
The report underscores the ways in which international trade has fostered inclusion in the global economy, presenting data that establishes a strong correlation between trade participation and reduced income inequality.
Dr. Okonjo-Iweala also addressed the obstacles that hinder individuals, businesses, and economies from benefiting from international trade, ranging from high trade costs that limit access to foreign markets and low-cost inputs to mobility and information barriers, skill mismatches, and limited financial access that frequently obstruct individuals from capitalizing on new opportunities.