Indonesia’s NUSA DUA: The crisis in Ukraine, rising food and gasoline prices, and surging inflation have all contributed to a cloudy view of the world economy, Warned by Ngozi Okonjo-Iweala the World Trade Organization (WTO) head, Several major economies face a serious risk of entering a recession.
Poor countries and Emerging and developing nations will be more affected by the recession in major economies. The WTO head is hopeful that the Resumption of the U.S-China leaders dialogue(WTO reform talks 2023) will be a break-though in resolving issues. WTO urges G20 nations to remove food export restrictions.
WTO Director-General Ngozi Okonjo-Iweala said. “It may not happen everywhere, but several key countries risk sliding into recession,” Of course, that might have a big impact on developing nations and emerging markets, which depend on wealthy nations’ exports to recover.
The World Trade Organization in contrast to the predicted 3.5% increase for this year, last month’s projection for global trade growth in 2023 was just 1.0%.
Okonjo-Iweala said that in response to rising food export restrictions that harm developing nations by raising food prices, she has urged G20 leaders to gradually lift these restrictions.
The WTO’s dispute settlement system has been paralyzed since 2019 when the administration of former U.S. President Donald Trump blocked the appointment of judges for an appeals body arbitrating on international trade disputes, according to Okonjo-Iweala, who expressed her “very hopeful” optimism for a breakthrough. The trade ministers of the G7 advanced economies agreed in a meeting in September to work toward having a functioning WTO dispute settlement system by 2024.
“The Americans are consulting actively with other members at an informal level,” she said, adding that the increased U.S. engagement will help and speed up the progress on reform from 2023. The trade ministers of the G7 advanced economies agreed in a meeting in September to work toward having a functioning WTO dispute settlement system by 2024.
She mentioned a few positives, including the U.S. On the fringes of the G20 summit, President Joe Biden and Chinese President Xi Jinping met to repair their poor bilateral relations, one of the many concerns weighing on the prospects for a global recovery. “It’s always beneficial when the two largest economies in the world talk to one another, as was observed at the US-China summit. “Certainly with respect to trade, it’s very helpful.”