WTO Puts the Cost of Trade Fragmentation at up to 10% of Global GDP
13 Articles
13 Articles
WTO Report 2026: Is the world's trade rulebook breaking?
The World Trade Organization's 2026 World Trade Report warns that the global trading system faces its most serious disruptions in 80 years. Fixing the rules could add about $3 trillion to the world economy. Letting them fall apart could cost 5 to 10% of global GDP, with the poorest countries hit nearly four times harder than rich ones. Deepak Ajwani, Editor, The Economic Times Digital, reports from Geneva.
The cost of dismantling the international trading system based on common rules and the return to unilateral policies, as Donald Trump's government has been imposing, would lead to trillions of dollars' losses for the global economy. According to the World Trade Organization (WTO) report, a more uncertain environment, in a geographically fragmented world marked by free trade agreements, would reduce world production by 5% to 10% by 2050, equivale…
WTO puts the cost of trade fragmentation at up to 10% of global GDP
The World Trade Organization says a stronger multilateral trading system could lift global gross domestic product by 2.9% by 2050, equal to about $3 trillion in 2023 prices. Its new report also puts the gap between deeper cooperation and a more fragmented system at roughly 5% to 10% of global real GDP.
The organizations indicated that if the global trading system was not modernized, global GDP could be 10 per cent lower than a strengthened multilateral system.
The World Trade Organization warns that a decline in trade cooperation and increased protectionism could reduce global GDP
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