(15 September 2023 – Switzerland) Disintegration of the global economy into separate blocs would be extremely costly and create greater instability the World Trade Organisation (WTO) warns.
The WTO estimates in a new report that the cost of splitting the world trade system into separate blocs would be five percent of real income at the global level. Some developing economies would incur double-digit losses.
“The WTO is not perfect, far from it, but the case for strengthening the trading system is far stronger than the case for walking away from it. The alternative to rules-based integration is power-based fragmentation and a world of greater uncertainty, increased socioeconomic exclusion and heightened environmental decline” stated WTO Director-General, Ngozi Okonjo-Iweala.
“Globalisation is at a crossroads and we need to think about where we go. The various crises have generated the perception that globalisation exposes us to increased risks” said WTO Chief Economist, Ralph Ossa.