Kathmandu. United Nations Chief Antonio Guterres warned on Wednesday that the rules-based international trading system is under threat due to rising debt, heavy taxes, and financial insecurity in emerging countries.
Guterres said many countries are mired in debt crises and are spending more on servicing lenders than on health and education.
“Global debt has increased. Poverty and hunger are still widespread. The international financial architecture is not providing adequate safety nets for developing countries, and the rules-based trading system is at risk of going astray,” Secretary-General Guterres said at the United Nations Conference on Trade and Development in Geneva.
“Trade and development are facing a storm of change, with three-quarters of global growth now coming from developing countries, trade in services is increasing, and new technologies are boosting the global economy,” Guterres said.
However, the UN Secretary-General has said that geopolitical divisions, inequality, conflict, and the climate crisis are limiting progress.
The world Economy is in turmoil
In addition, US President Donald Trump’s administration has imposed sweeping tariffs on other countries, leading to trade tensions around the world. Guterres said, “Protectionism may be inevitable in some circumstances, but it must be rational.”
The UN chief warned of “small changes” continuing in developing countries, with uncertainty rising, investment falling and supply chains disrupted.
“Trade barriers are rising, with some least developed countries facing tariffs of 40 percent, while they represent only one percent of global trade flows,” he said.
“We see a growing risk of trade wars for goods. The trend in military spending shows that we are investing more in death than in the prosperity and well-being of our people.”
Guterres said there were four priorities for international action in addressing these threats. He stressed the need for a fair global trade and investment system, strong financial support for developing countries, technology and innovation to boost economies, and aligning trade policies with climate objectives. (AFP)
