President Cyril Ramaphosa has called on world leaders to ensure that the multilateral trading system is “strengthened” in the face of uncertain economic times.
The President was delivering remarks at the 30th Anniversary of the establishment of the World Trade Organisation (WTO).
World trade has come under uncertainty as the United States of America imposed – and then paused – steep trade tariffs on nearly all the world’s countries.
“The 30th anniversary of the establishment of the WTO takes place in challenging and uncertain times. We are seeing unilateral and protectionist measures being implemented by some advanced economies that are outside the agreed-upon multilateral framework.
“It is incumbent on us all to ensure that the multilateral trading system is strengthened, or we risk the encroachment of a global trade regime based on power dynamics,” President Ramaphosa said on Thursday.
Reforms for development
The President noted that although the WTO has worked to ensure a “level playing field in global trade that is free, predictable and governed by a rules-based system”, more can be done.
“Currently more than 80 percent of global trade takes place under the WTO rules-based system. However, imbalances persist.
“The inclusivity promised by the multilateral trading system and by the Doha Development Round has not materialised for many. Developing countries that account for most of the WTO’s membership remain locked into the lower end of global value chains.
“Across the globe, the constraints and potential over-reach of the rules are limiting access to key policy tools required to promote sustainable development,” he said.
He reiterated South Africa’s support for the WTO’s reform agenda which is aimed, in part, at advancing development.
“We must redouble our efforts to ensure that trade supports development. WTO rules must facilitate structural transformation that integrates developing countries into global trade.
“Governments must be afforded the requisite policy space to enable them to be more responsive to their domestic challenges, and trade rules must be recalibrated to provide policy space for developing countries to industrialise,” President Ramaphosa said. – SAnews.gov.za
