(Focus on Boao) All parties involved in global trade fragmentation call for ensuring the normal operation of the WTO

　　China News Service, Boao, March 26 (Yin Qianyun, Zhang Wenhui) Globalization has encountered countercurrents, geopolitical conflicts have intensified, and protectionism has risen, which is causing global trade to face the challenge of fragmentation. How to deal with trade protectionism and reduce trade fragmentation has received attention at the Boao Forum for Asia 2024 Annual Conference.

On March 26, the "Reducing Trade Fragmentation" sub-forum of the Boao Forum for Asia 2024 Annual Conference was held in Boao, Hainan. Photo by China News Service reporter Tian Yuhao

　　Why is global trade fragmented? Lin Yifu, dean of the Institute of New Structural Economics at Peking University, believes that this is mainly because some countries attribute internal problems such as high unemployment, slow economic growth, and declining proportion of the middle class to international trade.

　　Long Yongtu, China's chief negotiator for WTO accession and former Vice Minister of Foreign Trade and Economic Cooperation of China, believes that the root of the problem lies in the fragmentation of the global multilateral trading system. He pointed out that the fragmentation of the international multilateral system is "marginalizing" the World Trade Organization (WTO).

　　The WTO has always been regarded as the main driving force of globalization. Long Yongtu mentioned that the global trade system centered on the WTO created by the United States and Western countries, and the subsequent set of international rules, provide support for global trade development and economic prosperity.

　　"But unfortunately, they destroyed the system they created." Long Yongtu believes that the top priority today is to work together to strengthen the functions of the WTO and carry out necessary reforms.

　　As a trade-dependent country, Singapore has always been a major promoter of free trade. Former Deputy Prime Minister of Singapore Huang Kan-shing pointed out that the most important thing for Singapore at the moment is to have clear rules for trade, and the WTO’s function in formulating rules and maintaining trade multilateralization is extremely critical to Singapore.

　　Former U.S. Commerce Secretary Gutierrez affirmed the role of the WTO in avoiding trade protectionism. He suggested that leaders should first commit to respecting global institutions and mechanisms and let people realize that the WTO is a very important global institution.

　　Long Yongtu said that when discussing WTO issues now, it is more important to establish the authority of the World Trade Organization in formulating rules, opening markets, and resolving disputes, and to implement true multilateralism. "It is not any country that has the final say, but all members of the WTO."

　　However, it is worth noting that under the impact of the global multilateral system, regional cooperation is becoming another option, and many inter-regional countries are tending to jointly formulate regional trade agreements.

　　Huang Gencheng mentioned that before a more effective multilateral trading system returns to normal operation, the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and other regional groupings can also promote Trade growth and globalization.

　　However, he also said that a fully functioning system should set the rules for all countries in the world. Therefore, ensuring the normal operation of the WTO and resolving differences and disagreements is in the common interest of countries. Especially for developing countries, if the WTO fails to promote globalization, the imbalance in developing countries will further expand.

　　Long Yongtu emphasized that regional trade can only solve the problem of trade fragmentation or unfair trade for a period of time, but cannot replace the global system in the long run.

　　He also conveyed the WTO’s attitude towards this issue: “Globalization and re-globalization will bring more people, more economies, and more pressing issues into global trade, and will bring development in the Americas, Africa, etc. that are still on the edge of the global division of labor. Including the country is a more promising solution than counter-globalization and de-globalization." (End)