Ramaphosa Urges Strengthening of Multilateral Trading System Amid Global Challenges

The President emphasized the need for global leaders to collaborate and ensure that the multilateral trading system is not only preserved but strengthened.

South African President Cyril Ramaphosa has called for a stronger, more inclusive multilateral trading system to ensure that global trade remains free, fair, and predictable in light of uncertain economic conditions. Speaking at the 30th anniversary of the World Trade Organisation (WTO), Ramaphosa highlighted the challenges posed by unilateral trade policies and protectionist measures adopted by certain advanced economies, which undermine the principles of multilateralism.

The Growing Threat of Protectionism

In his remarks, President Ramaphosa expressed concern over the increasing trend of protectionism, pointing out that the United States has imposed, and later paused, steep tariffs on several countries around the world. These measures, he argued, are outside the agreed-upon multilateral trading framework and threaten the very foundation of the global trade system. “The 30th anniversary of the establishment of the WTO takes place in challenging and uncertain times. We are seeing unilateral and protectionist measures being implemented by some advanced economies that are outside the agreed-upon multilateral framework,” said Ramaphosa.

The President emphasized the need for global leaders to collaborate and ensure that the multilateral trading system is not only preserved but strengthened. Without such efforts, he warned, the world risks creating a global trade regime based on power dynamics rather than fairness and rules-based order.

The WTO's Role in Global Trade

The WTO has played a key role in shaping global trade since its establishment three decades ago. According to Ramaphosa, over 80% of global trade operates under the WTO rules-based system, which has helped create a level playing field for many countries. However, despite these achievements, significant challenges remain, particularly for developing nations that still face obstacles in accessing global markets.

While the WTO has worked to ensure predictability and fairness in global trade, Ramaphosa pointed out that imbalances persist. Many developing countries, despite accounting for the majority of the WTO's membership, remain at the lower end of global value chains. This has led to the exclusion of these countries from the full benefits of global trade, particularly in key industries such as manufacturing and technology.

Reform for Development: A Call for Inclusivity

President Ramaphosa highlighted the need for deeper reforms within the WTO to address these imbalances. He underscored the importance of making global trade more inclusive and ensuring that developing countries are better integrated into the global economy. In particular, Ramaphosa stressed the need for trade policies that promote structural transformation and enable developing nations to industrialize and diversify their economies.

“The inclusivity promised by the multilateral trading system and by the Doha Development Round has not materialized for many,” he remarked. “Governments must be afforded the requisite policy space to enable them to be more responsive to their domestic challenges, and trade rules must be recalibrated to provide policy space for developing countries to industrialize.”

Ramaphosa also reaffirmed South Africa's support for the WTO's ongoing reform agenda, which seeks to make the trading system more responsive to the needs of developing countries. As part of this agenda, reforms should focus on expanding access to key policy tools that are necessary for sustainable development, such as those that support industrialization, infrastructure development, and technology transfer.

Ensuring Trade Supports Development

The South African President called for a renewed commitment to ensuring that global trade supports the development goals of all nations, particularly those in the Global South. He emphasized that trade rules should not only facilitate economic growth but also contribute to sustainable development and poverty alleviation. Trade must, he said, be a tool for achieving the United Nations’ Sustainable Development Goals (SDGs).

One of the primary issues Ramaphosa addressed was the need for policy flexibility to allow countries to tailor their trade strategies to their specific developmental needs. This includes creating the necessary space for governments to implement domestic policies that can stimulate growth, support local industries, and provide social protections for vulnerable populations.

A Call for Collective Action

In conclusion, President Ramaphosa made a passionate call to action for all nations, urging them to prioritize the health of the multilateral trading system in the face of rising geopolitical tensions and protectionist tendencies. He called on world leaders to work together to ensure that trade remains a force for good, fostering development, peace, and stability across the globe.

As the global economy continues to face disruptions, including the ongoing trade tensions between major powers, the WTO's role in maintaining an open, rules-based trading system has never been more crucial. For South Africa and other developing nations, the path forward lies in an inclusive global trade system that allows all nations to thrive, creating a more balanced and equitable global economy.

Ramaphosa’s remarks resonate deeply in the context of South Africa’s own development agenda, which emphasizes industrialization, job creation, and poverty reduction. As the global community navigates the complexities of trade in the 21st century, the President’s call for reform and greater inclusivity remains vital for the future of global commerce.