In a recent address at an event in Geneva, Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), expressed concerns about early signs of potential global trade fragmentation. Okonjo-Iweala cautioned against practices like ‘reshoring’ and ‘friendshoring’ occurring between trade blocs, emphasizing the importance of maintaining a connected global trade landscape.

“While we don’t yet see any large-scale fragmentation, we are beginning to see signs,” stated Okonjo-Iweala, characterizing this emerging trend as “dangerous.” She emphasized that embracing practices like reshoring and friendshoring could lead to costly trade fragmentation. Instead, she advocated for a reimagining of globalization, which she referred to as “re-globalization.”

 

The WTO Director-General’s remarks underscore the need for international cooperation and a cohesive approach to global trade in a rapidly evolving economic landscape.