WT/MIN(24)/ST/110  
26 February  2024 
(24-1662) Page: 1/2 
Ministerial Conference  
Thirteenth Session  
Abu Dhabi, 26 -29 February 2024  Original: English  
 
 
STATEMENT BY MR PABLO SAAVEDRA  
VICE PRESIDENT, EQUITABLE GROWTH, FINANCE AND INSTITUTIONS  
WORLD BANK 
(Speaking as an Observer)  
Over many decades, international trade has been a remarkable engine of prosperity. In developing 
countries, it facilitated income growth, elevated living standards, fostered job creation and 
contributed to poverty reduction.  
 
Today the world is experienci ng the weakest expansion in trade of goods and services compared to 
any global recovery in the last five decades. While global trade volumes have surpassed their 2019 
levels, there was a decrease in global trade in goods in 2023 compared to the previous ye ar. The 
slowdown of international trade and the reconfiguration of trade patterns is partly driven by policy 
choices.   
 
Rising geopolitical tensions, concerns about economic security, and supply chain resilience have 
prompted some countries to change their  supply chains. Moreover, we have seen a proliferation of 
trade barriers and subsidies aimed at addressing the distributional impacts of trade domestically and 
in support of various policy goals. While these are legitimate concerns, it is important to avoi d 
unintended consequences, particularly in developing economies.   
 
The number of measures restricting trade has quadrupled since 2020. Trade is increasingly 
conducted with countries that are geopolitically closer to each other. These measures can reduce 
global economic efficiency. Proliferating subsidies can distort trade even more than tariffs. Today, 
almost half of traded goods are covered by a subsidy, up from 20% in 2012. This is clearly shown 
by the estimated tariff equivalent of these expanding subsid ies, which has reached 15% on average 
for agriculture and 8% for manufacturing.   
 
A coordinated set of strategic actions is needed to enable stronger global trade, and to support 
developing countries. Three actions stand out:   
 
First, at the global level there is a need to restore the basic functions of a rules -based trading system. 
Ensuring a level playing field and offering credible dispute resolution mechanisms are global public 
goods.  
 
Second, at the regional level, bilatera l or plurilateral trade agreements should be leveraged to ensure 
access to markets, reduce transaction costs, and increase transparency. A new generation of such 
agreements are focusing on key behind -the-border issues that matter for trade, while a deliber ate 
effort should be made to ensure that these regional trade agreements – especially the deeper ones  – 
are "interoperable " by ensuring they rely on highly similar principles and operational criteria.  
 
Third, developing countries should leverage the oppor tunities stemming from digital trade. Between, 
2005 and 2022 sales of digital services grew by 250%, providing opportunities for women, youth, 
and other disadvantaged groups. This requires investments to increase reliable and affordable access 
to electrici ty and the internet.  
 WT/MIN(24)/ST/110  
 
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  The Thirteenth Ministerial Conference provides a key platform to discuss these complex challenges 
and viable solutions. I wish you all a successful week.   
 
__________