Despite growing global trade policy uncertainties, the Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, says nearly three-quarters of global trade continues to operate under the organisation’s rules-based framework.

Speaking on Thursday at the 7th Africa Emerging Markets Forum in Abuja, Okonjo-Iweala said about 72 percent of global goods trade still flows under the WTO’s Most-Favoured-Nation (MFN) tariff system, underscoring the resilience of the multilateral trading system.

The forum was jointly organised by the Central Bank of Nigeria (CBN), the Emerging Markets Forum (EMF), and the Centre for the Study of the Economies of Africa (CSEA).

She noted that global merchandise trade expanded by 4.6 percent in real terms, driven largely by strong demand for artificial intelligence (AI)-related products, despite the adverse effects of higher tariffs and policy uncertainty.

According to her, global services trade also recorded impressive growth of 5.3 percent, while digitally delivered services expanded by nearly six per cent.

World Health Organisation (WHO)

“Most countries continue to trade on rules-based WTO terms. Around 72 percent of global goods trade continues to flow under core WTO Most-Favoured-Nation tariffs,” she said.

She explained that an additional 16 percent of world trade is conducted within the broader WTO framework through bilateral and regional trade agreements that are built on WTO principles.

Okonjo-Iweala further revealed that global goods trade volumes in 2025 were more than 12 percent higher than pre-pandemic levels recorded in 2019, while services trade volumes had risen by 31 percent over the same period.

Addressing the impact of the Strait of Hormuz crisis, the WTO chief said countries had largely responded by adopting trade-facilitating measures rather than imposing restrictions.

According to her, governments have eased trade restrictions, facilitated the movement of oil and gas products, and explored alternative routes for transporting oil and fertiliser from the region.

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She, however, warned that those measures had not fully offset the disruption caused by the closure of the strategic waterway, which has triggered rising energy, fertiliser and food prices, particularly in vulnerable African economies.

“These measures have not been enough to compensate for the closure of the Strait of Hormuz, which has affected the world and especially vulnerable African countries through higher energy, fertiliser and food prices,” she said.

She added that although strategic competition among major economies was affecting trade in certain sensitive products and bilateral relationships, most countries still favoured economic interdependence.

“On the whole, while active strategic competition is affecting some sensitive products and bilateral relationships, the prevailing practice of most countries remains continued interdependence, albeit within concentric circles of relatively closer or looser integration,” she said.

Highlighting the growing influence of developing economies, Okonjo-Iweala said South-South trade now accounts for about one-quarter of global trade, up from less than one-tenth in 1995.

She disclosed that of the 384 regional trade agreements formally notified to the WTO, nearly half (49 percent) were concluded among developing countries.

She added that several more agreements are yet to be formally notified, with the share of South-South agreements expected to be even higher.

According to her, 22 economies that are not yet members of the WTO are actively pursuing accession to the 166-member global trade body.

(NAN)