International Trade Faces Worst Disruptions in 80 Years, WTO Warns

The World Trade Organization (WTO) warned that the international market is facing the worst disruptions in the last 80 years. This scenario is generated as a result of bottlenecks occurring in supply chains in the Strait of Hormuz.

This was stated by Ngozi Okonjo-Iweala, Director-General of the WTO, who maintained that "the global trading system remains robust, but the ongoing conflict in the Middle East represents a significant test for the organization's 166 member countries."

However, she warned that "caution must be exercised regarding the sustainability of this trend, while also warning that the economic benefits of this booming trade remain concentrated in North America and East Asia, raising concerns about inclusion in the global market."

Furthermore, it was added that "previous WTO estimates indicate that crude oil prices reaching 90 dollars per barrel could reduce overall trade growth by 0.5 points, while current crude oil prices have already exceeded that threshold."

"Shipping companies maintained trade volume by diverting vessels through alternative routes, but these long detours are generating high additional costs, which calls into question the long-term stability of the current supply chain," it was remarked.

Finally, it was detailed that "Okonjo-Iweala urged developing countries to participate in the development of modernized policies to ensure they can also take advantage of economic opportunities, while the proposed reforms will focus on deficient institutional mechanisms and would help prevent these countries from being left behind."