Global trade has increased fivefold since 1995, reaching more than US$30.4 trillion in 2023, according to the World Trade Organization.
In a report commemorating its 30th anniversary, the WTO, created on April 15, 1994, following the signing of the Marrakesh Agreement, stated that between 1995 and 2023, total world commerce in products and commercial services increased by 5.8 percent each year.
According to the paper, the global trade-to-GDP ratio increased significantly from 20% in 1995 to 31% in 2022 before falling back to 29% in 2023 as goods trade dropped in value terms on a balance-of-payments basis.
It also stated that tariffs had decreased significantly under the WTO, lowering trade expenses.
According to the report, this trade expansion has corresponded with a significant reduction in global poverty, demonstrating the importance of trade in promoting economic development and improving people’s lives.
It stated, “The 30 years since the WTO’s inception have heralded a new age of commerce and economic progress.
“This shows that economies are becoming more interconnected through trade, notwithstanding transitory reductions during the global financial crisis in 2008 09 and the COVID-19 pandemic in 2020.
“The share of services in trade—mainly digitally supplied services—is increasing.
In addition, services have grown in importance in global trade over the last three decades.
The WTO was established 30 years ago to replace the General Agreement on Tariffs and Trade (GATT), which primarily dealt with trade in goods.
It intended to establish a new global order based on openness, inclusion, and cooperation.
It also addresses trade in services and intellectual property, with the overarching goal of assisting members in using trade to enhance living standards, generate jobs, and better people’s lives.
WTO researchers predict that global merchandise trade will increase by 2.6% in 2024 and 3.3% in 2025 after declining by 1.2% in 2023.
Mrs. Ngozi Okonjo Iwela, President of the World Trade Organization, emphasized in her remarks that resilient supply chains and a robust multilateral trading framework have contributed to global trade recovery, which is critical for enhancing livelihoods and welfare.
To ensure economic development and stability, we must address geopolitical tensions and trade fragmentation threats.
According to the WTO, while trade between established economies accounted for more than half of global trade in 1995, this proportion had dropped to 39% by 2022, indicating a relative shift in trade flows towards developing and emerging nations.
The trade body recently said that global goods commerce is anticipated to gradually recover this year after contracting in 2023, owing to the lingering effects of high energy prices and inflation.
