Gyeongju: The World Trade Organization (WTO) continues to be a crucial element of global trade despite the growing trend of protectionism, according to a senior official at the WTO. The official emphasized the need for diversifying supply chains to strengthen the resilience of the free trade system.
According to Yonhap News Agency, Tomochika Uyama, senior adviser to the WTO director-general, addressed the issues facing the global trading system during a session on economic cooperation at the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Gyeongju. Uyama noted the severe stress on the global trading system caused by rising protectionism, unilateral tariffs, and geopolitical fragmentation.
Uyama acknowledged the skepticism surrounding the multilateral trading system, noting that 72 percent of global trade in goods is still conducted under the WTO's most-favored nation terms. He assured attendees that while the system is damaged, it remains functional and serves as the backbone of global trade governance.
The WTO official's comments were made in the context of global uncertainties, including the United States' tariff policies and China's export controls. These issues have prompted several APEC member economies, such as South Korea and China, to seek agreements with the U.S. to lower tariffs on their goods.
Uyama urged APEC countries to diversify their supply chains to mitigate trade uncertainties. He highlighted the importance of developing resilient and deconcentrated supply networks to reduce dependencies and enhance national and economic security.