The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, recently addressed an audience in Singapore, urging middle powers to play a more active role in defending and reforming the multilateral trading system. In her speech, she highlighted the importance of these countries in maintaining a functional global trade environment.
Okonjo-Iweala acknowledged the contributions of Adam and Danny for their advocacy of open, rules-based multilateral trade. She emphasized that middle powers, although not as large as major economies like China or the United States, collectively account for a significant portion of world trade. "In aggregate they are major players in global trade," she stated.
She warned against the rising unilateral trade restrictions and subsidies which threaten the global trading system. Despite these challenges, she noted that "global trade and the trading system have been resilient through the shocks of the past five years."
Okonjo-Iweala stressed that middle powers depend heavily on international trade with various partners. She cited Singapore's diverse trading relationships as an example and mentioned Foreign Minister Vivian Balakrishnan's stance on maintaining good relations with multiple countries.
She expressed concern over signs of fragmentation in global trade, pointing out slower growth in US-China bilateral trade compared to their respective trades with other nations. WTO economists estimate significant GDP losses if global economic decoupling occurs.
To prevent further deterioration, Okonjo-Iweala suggested that middle powers form coalitions supportive of multilateralism and engage in diplomacy with larger economies like the US and China. She also encouraged them to lead efforts in WTO reform and extend supply chains to include more developing regions.
In conclusion, Okonjo-Iweala urged middle powers to take decisive action to safeguard an open global economy: "If they work together...they can help keep international markets broadly open." Her call to action highlights both the challenges facing global trade and potential solutions led by cooperative efforts among smaller yet influential nations.