UN Secretary-General António Guterres stated that the international trade system is on the brink of collapse and that the international financial structure has become outdated and unfair to developing countries.
In a speech delivered at an event marking the 60th anniversary of the United Nations Conference on Trade and Development (UNCTAD), Guterres said, “The international financial structure is outdated, ineffective, and unfair. It has failed to ensure the security of debt-ridden developing nations. Meanwhile, the international trade system is facing problems across the board and is on the verge of fragmentation.”
He pointed out that trade has become a “double-edged sword,” as it is now a source of both prosperity and inequality, interconnection and dependency, economic innovation, and environmental degradation.
He added, “The work of UNCTAD is crucial because of the weakening of multilateral cooperation and the strengthening of fragmentation forces. Since 2019, the number of new trade barriers imposed annually has tripled, most of which are due to geopolitical competition, regardless of their impact on developing countries. The world cannot afford to split into competing blocs.”
Guterres also called for the enhancement of South-South trade and ensuring stability in a multipolar world through the establishment of a new financial architecture, a tax payment structure, and digital governance.
source: lualuatv
