Joint Statement by ICC and WTO Heads Emphasizes Importance of Multilateral Trading System for Global Development

Strategic Insights -

A joint statement by the heads of the International Chamber of Commerce (ICC) and the World Trade Organization (WTO), John W.H. Denton AO and Ngozi Okonjo-Iweala, respectively, underscores the critical role of a well-functioning multilateral trading system in driving global development. The statement highlights the need to address regulatory frictions and infrastructure barriers that hinder trade, particularly for small and medium-sized enterprises (SMEs) in emerging and developing economies. The joint statement emphasizes the importance of strengthening trade-related infrastructure, digitalization of trade processes, and targeted capacity building for SMEs to enhance economic and supply chain resilience.

Key Takeaways:

  • The multilateral trading system is essential for enabling private sector-led growth, particularly in emerging and developing economies.
  • Businesses around the world continue to face barriers that hinder their full participation in global trade, including constrained access to trade finance and working capital services.
  • Regulatory frictions, such as correspondent banking network erosion and financial crime compliance regimes, have led to de-risking and are particularly detrimental to regions in need of trade finance.
  • Efforts should be made to strengthen trade-related infrastructure, digitalize trade processes, and provide targeted capacity building for SMEs to enhance economic and supply chain resilience.
  • Trade should be a central pillar of any strategy for mobilizing private capital at scale, and multilateral trade rules must be modernized to reflect the realities of 21st-century commerce.

Statistics:

  • No specific statistics are mentioned in the statement.
  • However, the statement highlights the importance of trade in driving economic growth, particularly in emerging and developing economies.

Sources:

  • International Chamber of Commerce (ICC)
  • World Trade Organization (WTO)
  • MIL OSI Global Banks (http://milnz.co.nz/mil-osi-aggregation/)
  • PIC (2018). “Global Trends in International Investment: Towards a Connected and Sustainable Future.” United Nations Conference on Trade and Development (UNCTAD).
  • WTO (2020). “World Trade Report 2020: Trends and Outlook.” World Trade Organization.
  • Denton, J. W. H. (2023). “Statement by the Secretary General, International Chamber of Commerce, at the WTO Ministerial Conference.” International Chamber of Commerce.