Washington, October 5, 2026 (Yes Punjab News)
Global trade has remained stronger than expected despite US tariffs, high energy costs, the Iran conflict and growing pressure on the international trading system, World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has said.
Okonjo-Iweala said 72 per cent of global goods trade continues to take place under the WTO’s most-favoured-nation terms, providing businesses with a degree of stability and predictability despite growing strains on traditional trade rules.
Speaking to CNN, she said the resilience of global commerce had surprised even the WTO, particularly as goods trade has repeatedly outperformed the organisation’s forecasts.
The WTO had projected global goods trade growth of around 2.4 to 2.5 per cent last year, but actual growth reached 4.6 per cent. Okonjo-Iweala said trade in artificial intelligence-related products, including semiconductors, processors, hardware and software, accounted for 42 per cent of that expansion.
The momentum has continued into 2026. Despite forecasting goods trade growth of only 1.9 per cent this year amid tariffs, elevated energy prices and risks around strategic routes such as the Strait of Hormuz, the WTO recorded 3.2 per cent growth in the first quarter.
Okonjo-Iweala, however, cautioned against assuming that the trend would continue indefinitely.
“We don’t know whether this can be sustained or it’s a bit of a bubble,” she said, adding that the benefits of the AI-driven expansion were also concentrated, particularly in East Asia and North America.
She said the continued reliance of businesses on WTO rules demonstrated that the multilateral system retained an important core, even as the trading environment has changed significantly.
Okonjo-Iweala acknowledged that the US, historically a key supporter of the post-World War II trading architecture, has moved towards greater protectionism under President Donald Trump.
While she said the strength of trade flows indicated that some elements of the system remained effective, she drew a distinction between resilience and robustness.
“It doesn’t mean that the system is resilient, but is it robust? And I don’t think it is,” she said.
She also pointed to a growing trust deficit among WTO members, making institutional reforms difficult. However, she said members increasingly recognised the need to modernise the organisation and expressed optimism about its future.
Beyond traditional goods trade, Okonjo-Iweala highlighted the rapid expansion of digitally delivered services and green trade. She said digitally delivered services were growing even faster than digital trade generally, while green trade had already crossed the $2 trillion mark.
The WTO chief’s assessment therefore presents a mixed picture: global commerce continues to withstand major disruptions, but the rules governing it face significant structural and political challenges.
FOLLOW NOW
