Friday 19 Jul 2024 - 12:00

03:11 am


UN chief says global tensions threaten international trade

NNA - The international trading system is on the brink of fragmenting amid rising geopolitical tensions, UN Secretary-General Antonio Guterres warned Wednesday, as he cautioned the world against splitting into rival blocs.

"The international trading system is challenged on all sides; teetering on the verge of fragmentation," Guterres said at a ceremony marking the 60th anniversary of the UN Trade and Development agency (UNCTAD).

"Geopolitical tensions are rising; inequalities are growing; the climate crisis is hitting many developing countries hard," he said at the United Nations' European headquarters in Geneva.

"New and protracted conflicts are having a ripple effect across the global economy," he added.

"Trade has become a double-edged sword: a source of both prosperity and inequality; interconnection and dependence; economic innovation and environmental degradation."

The World Trade Organization and the International Monetary Fund have been warning for months against geo-economic fragmentation, in which countries favour trade within their region or specified trading bloc rather than at a global scale.

IMF managing director Kristalina Georgieva warned in April last year that countries had to do more to the avert the costly consequences of global trade fragmentation and help to head off a "second Cold War".

And since the Russian invasion of Ukraine in February 2022, WTO director-general Ngozi Okonjo-Iweala has repeatedly warned of the risks of the world economy fracturing.--AFP




تابعوا أخبار الوكالة الوطنية للاعلام عبر أثير إذاعة لبنان على الموجات 98.5 و98.1 و96.2 FM

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