While the need for trade reform is clear, UNCTAD stresses that the solution must come through dialogue and negotiation. Trade imbalances, concentrated gains and outdated rules must be addressed without sacrificing those least responsible.
Global economic growth could decline further: In a low-growth, high-debt global economy, higher tariffs risk weakening investment and trade flows – adding uncertainty to an already fragile context. This could erode confidence, slow investment, and threaten development gains, particularly in the most vulnerable economies.
The most vulnerable will bear the highest cost: Economies with minimal responsibility for global trade imbalances are facing severe penalties – despite being the least equipped to absorb new shocks.
Dialogue – not escalation – is the only path forward: The need for trade reform is clear. Trade imbalances, concentrated gains, and outdated rules must be addressed – without affecting those least responsible.
As major economies are set to impose sweeping new tariffs, UN Trade and Development (UNCTAD) alerts that the global trade system is entering a critical phase – threatening growth, investment, and development progress, particularly for the most vulnerable economies.
Source UN TRADE AND DEVELOPMENT
