WTO report: The multilateral trading system is facing the most serious challenges

Geneva, September 15 (Xinhua) -- The World Trade Organization released the "2026 World Trade Report" on the 15th, stating that global trade policies and the WTO are facing the most serious and sustained challenges since the establishment of the multilateral trading system. If the modernization of the trading system is not promoted for a long time, global output may decline by up to 10%; Strengthening the multilateral trading system through reform will promote global economic development.

The latest annual key report of the World Trade Organization, titled "The World Trade System at a Critical Moment," outlines the achievements of the multilateral trading system over decades and the challenges it currently faces. The report points out that this system has helped reduce trade barriers, promoted the expansion of global trade by nearly 50 times, and created a more open, integrated, and rule-based global economy.

The Director General of the World Trade Organization, Isabella, stated that over the past 80 years, the multilateral trading system has created enormous benefits and helped build a more integrated and resilient global economy. Data shows that about 72% of global trade in goods is still conducted under the most favored nation treatment framework of the World Trade Organization, and trade cooperation led by the WTO not only supports economic growth, but also helps narrow the income gap between developing and developed economies, playing a role in promoting peace.

Ivira said, "The global trade pattern has undergone significant changes, but the logic behind the establishment of this system, which states that cooperation among all economies is better than unilateral action, still applies today

Robert Steiger, Chief Economist of the World Trade Organization, pointed out at a press conference that this report is not primarily focused on a specific trade issue, but rather raises a series of more fundamental questions: why the multilateral trading system has been effective, what value it still provides today, why it faces such severe pressure, and what this means for the future.

The report points out that the four major development trends that make global cooperation more complex include: the transformation of economic power patterns, increasing government intervention and concern for a fair competition environment, changes in the nature of trade driven by digitization, global value chains, and environmental transformation, and intensified geopolitical tensions.