Responding to the publication of the World Trade Report by the World Trade Organisation, William Bain, Head of Trade Policy at the British Chambers of Commerce said:
“Today’s report raises serious questions about some of the key principles underpinning global trade over the past 80 years.
“The document rightly argues geopolitical and national security concerns, rising subsidies, shifts in economic power, and the knock-on effects of domestic policy changes all pose risks to exports and cross-border trade.
“Global trade patterns have clearly shifted, and there is a strong sense from the report that WTO rules and working practices must change in response.
“Nevertheless, the report provides a clear-headed view of the benefits of the rules-based system for global trade. A rise of 140% in trade across the 166 members of the WTO since its creation is very welcome.
“The options going forward are clear. If the WTO can reform and countries co-operate on supply chains, subsidies and security, the report says global growth could be 2.9% higher and exports 17% higher. If the system fragments along geopolitical lines, the report suggests GDP growth could fall by 5.1% and exports by 18.6%. Shattering the WTO system completely could mean a 6.9% fall in global GDP and a 26.9% fall in exports.
“Businesses in the UK and throughout our international Chamber network want to see a reformed World Trade Organisation capable of delivering on the undoubted challenges ahead.
“Global trade has changed, WTO reform is now essential, and greater transparency on subsidies is key to helping UK exporters.”