In a recent address, DDG Ellard emphasized the critical role of the World Trade Organization (WTO) in fostering global cooperation amid rising geopolitical tensions. She highlighted the WTO's unique platform that allows all its members, regardless of size or development status, to have an equal voice in shaping global trade rules.
"The WTO is not perfect, and our members are not perfect. But at the WTO, everyone is at the table," said DDG Ellard. This underscores the organization's capacity to unite diverse perspectives for consensus-based decision-making.
Ellard acknowledged the challenges of reaching consensus among the 166 member countries with varying priorities and political systems. However, she maintained that consensus is achievable, particularly on global environmental and sustainability issues.
She cited the Agreement on Fisheries Subsidies, finalized in June 2022, as a successful example of addressing global commons issues through the WTO. "Consensus is difficult but possible, especially when issues of global importance, like ending the worst forms of unsustainable fisheries subsidies, are at stake," she stated.
DDG Ellard also warned against economic fragmentation's risks. Citing WTO research, she noted that global GDP could decline by at least 5% if economic decoupling into two blocs occurs. Developing countries would face even steeper declines in GDP. "Re-globalization, not fragmentation, can contribute more effectively to a secure and prosperous world," she emphasized.
Addressing economists and scholars at her speech venue, Ellard stressed not to underestimate the significance of the WTO and multilateral trading systems in today's global environment. "Because the WTO is so vital, it is in everyone's interest to reform and improve it," she remarked. "And don’t take it for granted. A robust WTO is an essential element to bring countries together and ensure a more stable and resilient global economy."
The remarks were made during the 3rd Kiel-CEPR Conference on Geoeconomics organized by the Kiel Institute for the World Economy and the Centre for Economic Policy Research—a key forum for discussing economic and geopolitical intersections.