WTO is Driven Stronger as World Trade is Increasingly Divided

JAKARTA - The world trading system is under increasing pressure. Amid rising protectionism and economic uncertainty, a number of officials and former officials have called for the role of the World Trade Organization or WTO to be strengthened so that trade disputes do not widen.

A number of officials and former government officials in the Boao Forum for Asia 2026 subforum in Boao, Hainan, assessed that globalization has not ended. However, world trade is now entering a more complicated phase because it is increasingly influenced by rules, political interests, and geopolitical pressures.

China Daily quoted Wednesday, March 25, reported that former Italian Prime Minister Paolo Gentiloni said global trade would continue. The issue, he said, is whether the system is still standing on rules or is determined by power. According to him, the way out is not protectionism, but cooperation to manage differences and prevent trade conflicts.

Gentiloni also assessed that the WTO needed to be strengthened so that trade disputes could be handled and global trade stability maintained.

Deputy Governor of the Hungarian Central Bank Daniel Palotai, still quoted from China Daily, reminded that the split in the global trading system had begun to put pressure on the confidence of business and investment actors. If it continues, the impact could enter the economy and employment growth.

Former US Trade Minister Carlos Gutierrez also sees the world economy as difficult to return to the old pattern in the near future. In the short term, he predicts that bilateral and regional agreements will become more dominant, while global rules are weakening.

Data from the General Administration of China Customs shows that China's trade with the US fell 16.9 percent in the first two months of this year to 609.71 billion yuan or about US$88.44 billion. On the other hand, China's trade with Belt and Road Initiative partner countries rose 20 percent to 4.02 trillion yuan.

Former WTO chief economist Robert Koopman, still from China Daily, said tariffs were not the main determinant of the direction of global trade. According to him, technological changes and innovation have a much greater influence.

Amid this situation, China will send a delegation to the 14th WTO Ministerial Conference in Yaounde, Cameroon, while encouraging developing countries to be more involved in the multilateral trading system.