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Global trade has experienced significant growth over the past three decades, resulting in positive impacts on poverty reduction and economic development. According to experts Barbara D’Andrea, Christophe Degain, Florian Eberth, Stela Rubínová, Monia Snoussi-Mimouni, and Ankai Xu, the signing of the Marrakesh Agreement Establishing the World Trade Organization in 1994 marked the beginning of a transformative period in global trade.
The World Trade Organization, established as the successor to the General Agreement on Tariffs and Trade, has played a crucial role in fostering openness, inclusivity, and cooperation in international trade. This commitment has led to a fivefold increase in global trade, reaching over US$ 30.4 trillion in 2023, as highlighted by the experts.
Notably, the past three decades have seen a significant shift towards services in global trade, with a notable increase in the share of commercial services. The rise of digitally delivered services has been particularly remarkable, experiencing a fourfold increase in value since 2005. The experts also point out that trade between developing economies has expanded rapidly, reaching nearly 25% of global trade by 2022.
Furthermore, the reduction in tariffs and trade costs has been a key driver of increased global trade, with tariffs applied by WTO members almost halving since 1996. This decline in trade impediments has contributed to a notable increase in global trade, estimated at around 30 to 45 percent.
Importantly, the growth in trade has not only boosted economic development but has also coincided with a sharp reduction in global poverty. Low- and middle-income economies have significantly increased their share in global exports, while the proportion of populations subsisting on less than US$ 2.15 per day has seen a marked decline.
The findings presented by the experts underscore the crucial role of trade in supporting economic growth, poverty alleviation, and the improvement of people's lives over the past 30 years.