Dr. Ngozi Okonjo-Iweala, the Director-General of the World Trade Organisation, noted during the 7th Africa Emerging Markets Forum in Abuja that a majority of global commerce continues to operate under WTO regulations despite current policy instabilities. The event was hosted by the Central Bank of Nigeria, the Emerging Markets Forum, and the Centre for the Study of Economies of Africa.
Okonjo-Iweala reported that world merchandise trade increased by 4.6 percent, largely driven by high demand for artificial intelligence-related products. Furthermore, services trade rose by 5.3 percent, with digitally delivered services expanding by nearly 6 percent. She highlighted that 72 percent of global goods trade follows core most-favoured-nation tariffs, while an additional 16 percent functions under broader WTO-based trade agreements.
Comparing current performance to pre-pandemic levels in 2019, goods trade volumes are up by 12 percent, and services have climbed by 31 percent. Regarding the Strait of Hormuz crisis, she explained that nations are prioritizing trade-facilitating measures to manage energy and food supplies. However, these efforts have not fully mitigated the economic strain caused by the route’s closure, which has negatively impacted African nations.
Finally, she emphasized the growing significance of the Global South, noting that trade between these regions has expanded to a quarter of total global trade, up from less than 10 percent in 1995. Nearly half of all trade agreements reported to the WTO now involve developing nations, and 22 additional countries are actively seeking membership in the organization.
