The rules governing global trade are under increasing strain, raising questions about whether the international trading system can continue to support development in an era of geopolitical rivalry and policy uncertainty.
In the latest edition of the Global Trade Update, UN Trade and Development (UNCTAD) warns that rising policy volatility and fragmentation in the global trading system risk undermining the stable conditions many developing countries rely on to expand exports, attract investment, and diversify their economies.
The findings come as members of the World Trade Organisation (WTO) prepare for discussions on reform ahead of the organisation’s 14th Ministerial Conference (MC14) where governments are expected to examine how the multilateral trading system can better respond to today’s evolving economic realities.
While the report focuses on structural challenges in the global trading system, UNCTAD notes that it continues to monitor the trade implications of ongoing geopolitical developments and disruptions affecting shipping and energy markets – including those linked to tensions in the Strait of Hormuz.