The World Trade Organization Trade Monitoring Report on G20 trade measures was issued July 4.
WTO Director-General Dr. Ngozi Okonjo-Iweala highlighted the significance of economic security in policy discussions, emphasizing that trade disruptions resulting from recent shocks have elevated its importance, according to a July 4 WTO news release.
“The trade disruptions caused by the shocks of the past three years have pushed economic security to the forefront of policy discussions," Okonjo-Iweala said in the release. "Yet what we have seen over this period is that open global trade, anchored in the multilateral trading system, is a powerful force for economic security, enabling WTO members to better produce and access food, medical supplies and other essentials.”
Between mid-October 2022 and mid-May 2023, G20 economies implemented more measures aimed at facilitating trade rather than restricting it, the release reported. However, certain export restrictions on food, feed and fertilizers were still in effect, disrupting the smooth flow of food in international markets and contributing to price volatility, a pressing global concern for food affordability.
The report attributes the ongoing uncertainty in global trade to various factors, including the war in Ukraine, the lingering effects of COVID-19, extreme weather events and high food and energy prices, according to the release.
“It is welcome that G20 economies have been taking more steps to facilitate imports, underscoring how trade is a tool to push back against inflationary pressures," Okonjo-Iweala said in the release. "I call on them to show leadership by continuing to reduce the number and trade coverage of export restrictions, particularly on food, feed and fertilizers, to help dampen the price volatility that makes life harder for people around the world.”
The report takes into account the significant decline in global merchandise trade, which experienced a sharp decrease in the fourth quarter of 2022 and has continued to perform below average in the first quarter of 2023, the release said. Projections indicate a slowdown in the growth rate of world merchandise trade volume, with an expected decrease from 2.7% in 2022 to 1.7% in 2023, followed by a modest recovery to 3.2% in 2024.
These figures illustrate the current and projected trends in global merchandise trade, according to the release.
“G20 economies must continue to show restraint in implementing trade-restrictive measures and exercise leadership in supporting open and mutually beneficial trade. Their initiative and leadership between now and MC13 will be crucial for delivering results,” Okonjo-Iweala said in the release.