Jason Furman, Practice of Economic Policy Professor at Harvard University, emphasized that globalization over the past 25 years has significantly improved human welfare. Despite a global population increase of two billion, more than one billion people have been lifted out of extreme poverty, leading to a 70% reduction in poverty worldwide. Key human development indicators like life expectancy, maternal mortality and literacy have also seen remarkable gains. Mr Furman attributed these improvements to economic globalization, including the movement of goods, services, capital, people and ideas across borders.

However, he noted the paradox that despite these achievements, globalization faces increasing scepticism and political resistance. Mr Furman pointed out that the growing backlash against globalization stems from widespread misconceptions about its effects, including that it only benefits a few while leaving the majority behind. This notion overlooks the role globalization has played in reducing global inequality, particularly between 2000 and 2020. Countries like China and India, which embraced global trade, have seen tremendous economic growth, while those that distanced themselves from globalization have largely missed out, he said.

Another misunderstanding is the belief that trade is fundamentally different from technological innovation. Mr Furman used an analogy to explain this: “Imagine we invented a machine that turns soybeans into cars. Trade operates similarly — you ship soybeans to one country, and in return, you receive cars.” This process mirrors the benefits of technological advancements, which people generally accept – yet trade is often viewed with suspicion, he added.

Mr Furman also addressed the misconception surrounding tariffs, which are often seen as a way to protect domestic industries from foreign competition. In reality, tariffs raise domestic prices and harm consumers. “Tariffs are paid by your own consumers,” Mr Furman emphasized, highlighting that protectionist policies can hurt the very industries they aim to protect.

So, why is the backlash against globalization so intense now? Professor Furman said this trend has  intensified especially in developed countries. Factors such as rising inequality, concerns over immigration, and fears about supply chain vulnerabilities have fuelled protectionist sentiments. Additionally, he said, geopolitical shifts have also made countries more focused on self-sufficiency, further contributing to the anti-globalization narrative.

He also noted the remarkable resilience trade has shown in the most difficult times: “I have been hearing about the end of globalization for pretty much my entire career. Yet, I think globalization is a lot more like a dandelion than it is like an orchid; dandelions can thrive no matter what you throw at them. Orchids are incredibly sensitive and need to be nurtured with exactly the right conditions. Trade is a dandelion in part because the benefits of it are so large.”

Looking forward, Mr Furman underlined the need to defend global trade while taking proactive steps to ensure that its benefits are more widely shared. One potential solution is fostering greater plurilateralism, where agreements are made between groups of countries, encouraging others to join over time.

“We need to create agreements that encourage other countries to follow, creating a natural system of leaders and followers,” he suggested. Furthermore, addressing inequality through policies that complement trade — such as investing in education, workforce training and social safety nets — would help mitigate the adverse effects on those who feel left behind.

Mr Furman concluded by stressing that as the world navigates a period of geopolitical uncertainty, the challenge is to build a more inclusive and resilient global trade system. “The question is not whether we can afford to keep globalizing, but whether we can afford not to,” he said, urging policymakers to embrace trade while addressing its shortcomings through thoughtful reforms.

DG Okonjo-Iweala underscored that Mr Furman’s insights align with recent WTO reports that emphasize how globalization has delivered positive outcomes but has not benefited everyone equally. The World Trade Report 2024 titled “Trade and Inclusiveness: Making Trade Work for All, launched on the first day of the Public Forum, underlines the fact that some developing nations still have not fully reaped the gains of global trade, yet they remain positive about its benefits.

“It’s amazing that some of them who have not benefited still believe in it and are still looking for answers from the trading system to deliver for them,” DG Okonjo-Iweala said.

DG Okonjo-Iweala emphasized that trade is currently facing significant challenges due to recent shocks like the COVID-19 pandemic, the war in Ukraine and climate change. These crises have exposed vulnerabilities in supply chains, leading to product shortages, price spikes and inflation in advanced economies. While some developing countries face financial instability, trade has shown resilience, helping sustain the global economy, she said.

“There is absolutely no doubt that trade is facing challenging times, and we look forward to hearing how trade can continue to pull the global economy along, continue to make a difference in people’s lives, continue to be a source of solutions for today’s global challenges.”

The WTO at 30: Evolution or Revolution?

The morning session of Day 2 of the Public Forum also featured a discussion on the successes and shortcomings of the multilateral system as it turns 30 years old and what comes next. The discussion highlighted the many challenges the system faces, including reforming the dispute settlement system, giving new momentum to trade negotiations and addressing geopolitical tensions.

Indonesia’s former Minister of Trade Mari Pangestu emphasized the WTO’s role in empowering developing countries, citing the formation of cohesive groups like the G20 and G33. She noted: “Trade is a means to development … you need complementary policies to enable the distribution of benefits.”

Scott Lincicome, Vice President of General Economics at the Cato Institute, countered pessimism about the trading system, noting that global trade has grown significantly despite geopolitical challenges, with 75% of world trade being conducted under WTO rules. Also, governments are continuing to show their support for the WTO system, whether it is through multilateral or plurilateral agreements. “These things are still happening, and they are still happening at the WTO, so declaring the death of the WTO is not just premature, it is pretty much misguided.”

Robert Howse, Professor of International Law at New York University, acknowledged the decline of neoliberalism and the need for the WTO to adapt to new power dynamics and geopolitical realities.

He stressed the need to use “the institutional human capital in the WTO to make trade improve the lives of people and make it possible for marginalized or relatively disempowered groups to benefit from the opportunities provided by the trading system.”

Federico Banos-Lindner, Senior Vice-President of Government Relations and Public Affairs at DP World, provided the perspective of a company operating in 80 countries and managing 11% of global trade. He noted the growing disparity between public and private sector perceptions of globalization and stressed the crucial role of effective governance. Without it, “we will have tariffs, we’ll have quotas, we’ll have trade barriers, all of which can fluctuate quite unpredictably,” he said.

Dr Bright Okogu, WTO Chief of Staff, emphasized the outcomes achieved at the 13th Ministerial Conference (MC13) in Abu Dhabi in February 2024, including progress on addressing the needs of developing and least developed countries (LDCs), the extension of the e-commerce moratorium and the accession of two new members: Comoros and Timor-Leste. He also noted that the dispute settlement system remains active, with 36 new cases since 2019 and six active panels. “The system needs some rejuvenation, but it remains functional,” he said.

Agriculture and inclusivity

A high-level session in the afternoon addressed how trade in agriculture can be improved to ensure more people benefit from it. The session, moderated by former European Union Trade Commissioner Cecilia Malmström, discussed policies that are needed to build a progressive, inclusive and sustainable global agricultural sector and whether agricultural policy in general requires a fundamental rethink.

Beth Bechdol, Deputy Director-General of the UN Food and Agriculture Organization, Inu Manak, a fellow for trade policy with the US-based Council on Foreign Relations, Diana Mondino, Minister of Foreign Affairs of Argentina, and Andrea Porro, Secretary General of the World Farmers Organisation all participated in the dialogue, offering their different perspectives. 

The need to keep agricultural markets open, the impact of conflicts and the climate crises on food security and the importance of including farmers in discussions on agricultural trade were among the issues discussed during the session.

Digital trade and disability inclusion

A Forum session dedicated to digital trade and disability inclusiveness marked the first joint activity between the WTO, UN Trade and Development, the International Trade Centre (ITC) and the International Labour Organization (ILO) under a new informal staff-level Inter-Agency Technical Working Group on Trade and Disability Inclusion.  The initiative aims to assist governments seeking to integrate and enhance disability inclusion within trade and development agendas and advocate for disability inclusion in trade agreements, policies and regulations.

The impact of international trade on persons with disabilities has been given little consideration in discussions on ensuring inclusive trade, speakers at the session said. Moderated by WTO Deputy Director-General Angela Ellard, speakers noted that trade has the potential to influence national governments’ ability to address barriers faced by persons with disabilities in areas such as infrastructure and social services. They also examined how digital technologies can be leveraged to foster inclusive employment practices and help realize decent working conditions and adequate skills for all.

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DG Okonjo-Iweala said: “It brings me great joy today to launch the pilot phase of applications for the Women Exporters in the Digital Economy Fund. The WEIDE Fund represents a pivotal step forward in our collective journey towards gender equality in trade and economic opportunities. This initiative is about much more than financial contributions and technical advice; it’s about fostering a future in which women are recognized as indispensable drivers of economic progress.”

“One generous donor has helped us kick off this fund with US$ 5 million, which we are signing today and that is the United Arab Emirates. As we launch this, we are going to encourage other donors who will see that it actually works,” DG Okonjo-Iweala said, thanking Sheikh Abdullah Bin Zayed Al Nahyan, UAE Minister of Foreign Affairs; UAE Minister of State for Foreign Trade Dr Thani bin Ahmed Al Zeyoudi; and UAE’s Ambassador Abdelsalam Mohamed A. Al-Ali.

Ms Coke-Hamilton said: “The WEIDE Fund was set up with a very clear and simple purpose to help these women-led businesses take full advantage of the digital revolution so they would grow trade and take the world by storm. It’s also a promise to women entrepreneurs around the world that we will never falter in our commitment to gender equality underpinned by women’s economic empowerment. It’s what compels us to call on everyone here today to step in and step up so that this WEIDE fund can not only live up to the expectations of women entrepreneurs, but actually surpass them.”

Ambassador Al-Ali said: “The UAE is honoured to contribute US$ 5 million to the WTO-ITC fund. This donation reflects our dedication to supporting the global advancement of women in trade and economic development. By supporting this kind of initiative, we are not only enhancing our commitment to global trade, but also enhance ensuring that benefits of trade are accessible to everyone, including women entrepreneurs, who are often underrepresented in global trade.”

The WEIDE Fund, launched by the WTO and the ITC in February 2024 at the 13th Ministerial Conference (MC13) in Abu Dhabi, aims to empower women entrepreneurs by helping them grow their businesses through international trade and digitalization. Specifically, the targeted beneficiaries are women-led micro and small enterprises in the formal sector which are already exporting or have export potential.

Through a competitive process, four business support organizations in developing countries will be selected as partners in the pilot phase. These business support organizations will then help launch competitions in each country, targeting hundreds of women to benefit from the fund through grants of up to US$ 30,000 along with technical assistance.

The WEIDE Fund will unlock opportunities in international trade and digital trade for women entrepreneurs by improving their access to: grants and support from financial institutions to reduce the finance gap; technical assistance and training related to digital skills and improving export competitiveness; export markets, with the aim of connecting more women to digital market platforms; and networks and support services, with the objective of creating more inclusive and effective business ecosystems including leveraging partnerships with the private and public sectors.

The WTO and ITC aim to raise US$ 50 million for the Fund, with an initial target of US$ 25 million, from public and private sector partners. The Fund will actively seek partnerships with various stakeholders, including governments, international organizations, development banks, philanthropic foundations and the private sector to implement initiatives aimed at maximizing the impact of the Fund’s activities. Collaboration and knowledge-sharing will be crucial to achieving sustainable and scalable solutions.

The Fund’s activities will be implemented through projects in specific countries in cooperation with business support organizations selected through a competitive call for proposals. At the country level, the Fund will implement a two-track system tailored to meet the needs of the targeted MSMEs. Both tracks will include a grant and complementary technical assistance.

More information on the WEIDE Fund can be accessed here.

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2024 World Trade Report

Getting the Public Forum underway, the launch of the World Trade Report 2024 titled “Trade and Inclusiveness: Making Trade Work for All” underlined WTO members’ shared goal to ensure that trade benefits more economies and more people.

Director-General Ngozi Okonjo-Iweala said at the launch: “A key message from the report is that protectionism is not an effective, or cost-effective, path to inclusiveness. More and better trade is the path of bringing people and places from the margins to the mainstream of the global economy.”

“But the report also makes clear that trade policy alone is insufficient to achieve this goal. Complementary domestic policies are necessary to make trade — and the wider economy in general — work for everyone,” DG Okonjo-Iweala said.

She noted that trade policy reforms since the WTO’s establishment have led to substantial growth benefits. Trade cost reductions helped to increase global real GDP by 6.8 per cent between 1995 and 2020 — and by 33 per cent in low-income economies. She added, however, that many poor countries, particularly in Africa, Latin America and the Middle East, remain on the margins of global trade and more needs to be done to integrate these countries. The report sheds light on the obstacles that have prevented individuals, firms and economies from capitalizing on international trade and how to address these issues.

WTO Chief Economist Ralph Ossa, presenting the report in detail, noted that the gap in income levels between economies has dramatically narrowed since the WTO was established 30 years ago. He pointed to new findings of strong links between trade participation and the narrowing of income disparities among economies and fresh evidence that membership in the WTO has boosted trade between members by an average of 140 per cent. Within economies, the report also finds that income inequality among people is not strongly correlated with trade openness. Nevertheless, not all people nor economies are fully enjoying the gains from trade, he said.

“Less trade will not promote inclusiveness, nor will trade alone. True inclusiveness demands a comprehensive strategy — one that integrates open trade with supportive domestic policies and effective international cooperation,” Mr Ossa said.

The full report is available here. The video recording of the launch event is available here.

Launch of the WTO Trade Concerns Database

The morning session of the Public Forum also featured the official launch of the WTO’s new Trade Concerns Database. 

“This initiative marks a milestone in the Organization’s ongoing efforts to enhance transparency, inclusivity, and access to critical information within the multilateral trading system,” Deputy Director-General Angela Ellard said at the launch event. 

“By providing an extensive repository of data on trade concerns discussed across various WTO bodies, the Trade Concerns Database equips stakeholders with the information and insights necessary to grasp and act on emerging issues that may be affecting their commercial interests,” DDG Ellard added.

Since 1995, WTO members have devoted an increasing amount of time and attention to the discussion of trade concerns. This improves understanding of the rationale behind other members’ regulations, shedding light on details regarding implementation and enforcement of WTO rules. In certain cases, this has helped facilitated the resolution of trade issues arising between members.

The Database includes detailed information on the type of trade concern raised, including the specific issues raised, the affected sectors, the members raising the concern and to whom it is addressed.  It also allows users to trace the history of each concern, the number of times the same issue was raised, and how discussions have evolved.

Suja Rishikesh Mavroidis, Director of the WTO’s Market Access Division, noted that the expression “trade concern” is used to refer to situations where one or more WTO members express concern over a trade measure being applied by another WTO member that could disrupt its market access rights and/or that it believes is not in line with WTO rules. These concerns encompass a wide range of topics, including tariffs and non-tariff measures such as technical regulations, standards, subsidies and other barriers to market access. 

The new Database provides users with access to information on the trade concerns raised by WTO members across various bodies, including the Council for Trade in Goods, the Committee on Market Access, the Committee on Technical Barriers to Trade, the Committee on Sanitary and Phytosanitary Measures and the Committee on Import Licensing, she added.

Over 1,800 trade concerns in total have been raised in these bodies since 1995, of which nearly half were discussed in the Committee on Technical Barriers to Trade.

The Trade Concerns Database can be accessed here.

Young Trade Leaders share their views on achieving inclusive trade

A high-level panel spotlighted the WTO’s first cohort of eight Young Trade Leaders, who shared their insights on how to improve the participation of young people, marginalized communities and developing economies in world trade. Representing six continents, the panellists stressed that bringing more people into global trade will help further development objectives across the world and support a robust global economy.

Launched in August 2024, the Young Trade Leaders initiative is aimed at fostering a better understanding of the WTO’s work and international trade among young people. On the eve of the Public Forum, the Young Trade Leaders met Director-General Ngozi Okonjo-Iweala and other high-level officials.

Eric Andrew, founder and team lead at AgrofixiNG, Nigeria, called for capitalizing on Africa’s production and resource potential to better integrate the continent into global trade. WTO data is a key resource to inform political leaders’ decision-making process, showing that economies can export more when they import more, he said.

Phoebe Britten, youth advocate, Founder and CEO of Inspire Tomorrow Education, Australia, said that trade can be a vessel to help achieve human rights, in particular women’s rights. Warning against the negative effect of cultural discrimination on trade, she called for multiplying binding institutional clauses in international pacts to help catalyse domestic changes.

Hugh Jones, international trade lawyer from Canada, stressed that more needs to be done to give indigenous communities a voice both within their borders and at the international level. Reflecting their trade and economic interests in trade policymaking will help unlock market opportunities for them, he said.

Yassine Krouk, bachelor’s student in political science at France’s Sciences Po Lille, called for reforming the multilateral trading system based on a re-globalization model whereby more people would cooperate to set the agenda on building common goods. Awareness of the rules-based trading system should be raised more widely among young people, he said.

Sunny Li, international relations professional from China, stressed that more developing economies are being excluded from trade blocs and paying the costs of increased trade barriers. She called for more cooperation and an inclusive mindset at the international level to circumvent the negative effects that recent geopolitical trends are having on trade inclusivity.

Florencia Mastrorilli, international trade lawyer from Argentina, underscored the opportunities for Latin America to become a bigger player in trade, including its growing population and active engagement towards a greener economy. To realize its potential, she said, the region should develop its trade infrastructure, make customs operations more efficient and reduce transportation costs.

Nasubila Ng’ambi, international trade law researcher in Malawi, called for boosting Africa’s trade footprint. This includes optimizing human capital, developing the participation of companies in the digital economy and strengthening access to finance and to infrastructure, she said.

Elina Sultanbekova, bachelor student in international relations from the Kyrgyz Republic, said that inclusivity in trade means ensuring that smaller nations, like the Kyrgyz Republic, and youth entrepreneurs gain equal benefits from global trade networks. By prioritizing digital trade and integrating Central Asian countries more meaningfully into trade, she said, more opportunities can be created, thus empowering every participant in the global market.

Information on this session is available here. More information about the Young Trade Leaders  programme can be accessed here.

Re-globalization

Later on the first day, a session titled “Re-globalization: Trade in a Geopoliticized World,” organized by the Peterson Institute for International Economics, focused on how trade and the WTO navigate increasing geopolitical tensions.

Discussants argued that for billions of citizens in third nations, trade remains a source of opportunities, jobs and peaceful development. By decentralizing supply chains and involving more regions and countries in global trade, re-globalization promises to extend the benefits of trade to a broader population. Drawing on unique conditions across four continents, the panel explored strategies to counter current trends and leverage trade as a driver of future growth.

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The programme, funded by France and Ireland, enables government officials from LDCs and small, vulnerable economies to undertake 10-month secondments in the Geneva-based missions of their respective economies. This involves participating in the WTO’s work in Geneva and representing their economies at WTO meetings as well as attending workshops and training events organised by the WTO. A total of 18 officials participated in this programme this year.

WTO Director-General Ngozi Okonjo-Iweala said: “Ireland’s contribution will help developing economies with small missions in Geneva engage more effectively at the WTO, which in turn will better equip them to seize the benefits that trade offers to improve their people’s lives and livelihoods. I thank Ireland for its continued generosity.”

Ireland’s Minister of State for International Development and Diaspora at the Department of Foreign Affairs Seán Fleming said: “Ireland is proud to be contributing to this important programme. We look forward to welcoming the programme’s participants in Ireland later in September to share our country’s learning and expertise on trade and investment which is so integral to our national prosperity.”

In 2023, Ireland contributed a total of EUR 450,000 (CHF 425,000) to three WTO trust funds, namely the French and Irish Mission Programme, the Standards and Trade Development Facility and the 13th Ministerial Conference LDC Trust Fund, which financed the participation of LDC government officials in the Conference at the end of February. In August 2024, Ireland renewed its annual contribution to the STDF.

Ireland’s contributions to the various WTO trust funds over the years amount to over EUR 16 million (CHF 15 million).

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DG Okonjo-Iweala expressed her heartfelt condolences: “We are profoundly saddened by the loss of Ambassador Ana Cecilia Gervasi whose tireless work on my recent trip to Peru, 5-6 May 2024, made it such a success. Her hard work and dedication to the principles of multilateralism and fair trade have left an indelible mark on the WTO and its mission. Ambassador Gervasi’s contribution to global trade policy will be remembered for years to come. We extend our deepest sympathies to her family, colleagues, President Dina Boluarte, and the Government of Peru during this difficult time.”

Ambassador Gervasi had a distinguished career in diplomacy, serving Peru in various high-level roles, including as Minister of Foreign Affairs and Vice Minister of Foreign Trade. In her role at the WTO, Ambassador Gervasi was an active voice in promoting the interests of developing nations, particularly in the context of Peru’s trade policies.

She represented her country in significant trade negotiations, including the Trans-Pacific Partnership (CPTPP) and the Free Trade Agreement between Peru and the United States.

Ambassador Gervasi’s contributions were instrumental in shaping Peru’s global trade strategy, and her leadership and diplomatic skillset were invaluable assets to the WTO community. Her passing is a significant loss to both her country and the international diplomatic community.

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The 2024 Public Forum will explore how re-globalization through trade can lead to a better world. In particular, it will delve into how green policies, services, and digitalisation can contribute to this objective.

Click here for more information.

The Forum will kick off with the launch of the World Trade Report, which this year will explore the complex interlinkages between trade and inclusiveness across and within economies. The Forum will also feature a lecture by Jason Furman, Aetna Professor of the Practice of Economic Policy at Harvard University and former Chairman of the Council of Economic Advisers during Barack Obama’s tenure as President of the United States. Following his presentation, Professor Furman will have a fireside chat with Director-General Ngozi Okonjo-Iweala, giving participants the opportunity to witness a candid exchange on the potential of re-globalization at a time of geopolitical uncertainty.

Several interactive activities will be organised throughout the Forum, including an immersive exhibition by the International Trade Centre (ITC) to celebrate their 60th anniversary.

The full programme is available here.

The Forum is an in-person event held at the WTO’s headquarters in Geneva. For those unable to attend, livestreaming of many sessions will be available on the WTO website . Please note that registration is now closed and no new registrations are allowed.

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