Amidst discussions at the 54th World Economic Forum (WEF) Annual Meeting this week, participants underscored the crucial role of trade and investment in steering the global economy towards a sustained recovery. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), emphasized the necessity of a free flow of trade, stating, “Without a free flow of trade, I don’t think we can recover.” In a bid to bolster investment and dismantle barriers hindering growth, the WTO is actively negotiating an investment facilitation agreement with 110 countries.
However, challenges loom on the horizon as geopolitical tensions in the Red Sea and a global growth downgrade impact projections. Okonjo-Iweala acknowledged that the WTO is revising its forecast for the projected 3.3 percent growth in commodity trade this year. Global trade leaders at the WEF expressed optimism about opportunities for investment, particularly in digital trade, services, and green initiatives within global supply chains.
Khaldoon Khalifa Al Mubarak, CEO of Mubadala Investment Company, highlighted the need for a shift in mindset, urging political acceptance of trade and globalization. He asserted that economic development, prosperity, and stability are interlinked, ultimately contributing to global peace. Greek Prime Minister Kyriakos Mitsotakis cautioned about geopolitical instability posing risks to supply chains and international trade.
EU Commissioner for Trade Valdis Dombrovskis stressed the European Union’s commitment to a rules-based multilateral trading system, emphasizing the importance of preserving a cohesive global trading environment. Recognizing the changing geopolitical landscape, he noted the EU’s role as the world’s largest trading bloc, emphasizing the need for growth, inclusive job creation, and a sustainable recovery.
WEF President Borge Brende framed the discussions within the theme “Rebuilding Trust.” The meeting, scheduled from Jan. 15-19, centers on four priorities: achieving security and cooperation in a fractured world; creating growth and jobs for a new era; harnessing artificial intelligence for economic and societal advancement, and formulating a long-term strategy for climate, nature, and energy.
