Director General of the World Trade Organisation, Dr. Ngozi Okonjo-Iweala, and the Managing Director of the International Monetary Fund, Kristalina Georgieva, have emphasized the importance of increased global trade in a policy paper released in June 2023.
Nairametrics reported that they proposed that while avoiding market fragmentation and adverse policy consequences on other nations, global collaboration, and shared standards may hasten the shift to a greener economy.
They also cited the notable decline in solar power costs, which have fallen by over 90% since 2010, to bolster their case.
The WTO believes that scale economies made possible by trade and cross-border value chains are responsible for 40% of this cost reduction.
“International commerce is essential to the resolution of many of the world’s most urgent issues today. Without trade, we cannot resolve the climate catastrophe and reach net-zero emissions of greenhouse gases.
“Trade is essential for getting low-carbon goods and services to the places where they are needed. By permitting scale economies, broadening the size of the market, and encouraging “learning by doing,” open and predictable commerce lowers the cost of decarbonization.
The leaders also acknowledged that since the global financial crisis, trade restrictions and subsidies have grown. Government responses to the epidemic and conflicts like Russia’s war in Ukraine caused tensions to rise even further, which prompted the implementation of trade-distorting regulations and efforts to secure vital supply chains.