WTO Hopes to Restore Confidence in Multilateral Trading System

Director-General of the World Trade Organization (WTO) Ngozi Okonjo-Iweala speaks during the opening ceremony of the 13th Ministerial Conference (MC13) of WTO in Abu Dhabi. (Reuters)
Director-General of the World Trade Organization (WTO) Ngozi Okonjo-Iweala speaks during the opening ceremony of the 13th Ministerial Conference (MC13) of WTO in Abu Dhabi. (Reuters)
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WTO Hopes to Restore Confidence in Multilateral Trading System

Director-General of the World Trade Organization (WTO) Ngozi Okonjo-Iweala speaks during the opening ceremony of the 13th Ministerial Conference (MC13) of WTO in Abu Dhabi. (Reuters)
Director-General of the World Trade Organization (WTO) Ngozi Okonjo-Iweala speaks during the opening ceremony of the 13th Ministerial Conference (MC13) of WTO in Abu Dhabi. (Reuters)

Trade ministers from World Trade Organization (WTO) member nations convened in Abu Dhabi on Monday for the 13th Ministerial Conference (MC13) with a shared aspiration: to forge a path toward revitalizing confidence in the global commercial framework.

WTO Director-General Ngozi Okonjo-Iweala lauded the remarkable adaptability of the multilateral trading system, asserting that it has demonstrated resilience in the face of formidable global obstacles.

“I'm delighted to say that we are kicking off this meeting with some excellent news. Here at MC13, the WTO is welcoming its first new members in almost eight years: Timor-Leste and Comoros,” adding, “Twenty-two more countries are seeking to follow in their footsteps.”

“The multilateral trading system, which I term a global public good since it was created 75 years ago, continues to be misconstrued some quarters and undermined,” she said.

The four-day MC13 kicked off in Abu Dhabi on Monday with ministers of economy, trade, and development from various countries, as well as representatives from global economic and trade organizations attending the event.

“Looking around, uncertainty and instability are everywhere. Geopolitical tensions have worsened.”

“Higher prices for food, energy, fertilizer, and other essentials continue to weigh on people's purchasing power, fueling political frustration.”

“People everywhere are feeling anxious about the future – and this will be felt at the ballot box this year.”

She added, “If we thought the world looked tough in mid-2022, when we were slowly emerging from the pandemic, and the war in Ukraine had shaken food and energy security, we are in an even tougher place today.”

Athaliah Lesiba Molokomme, chairperson of the WTO's general council, said the work facing trade ministers at MC13 "is more important than ever" in light of global challenges.

"Amid growing economic uncertainties and geopolitical tensions, we must collectively ensure that the WTO is fit to respond to the challenges of today," she said.

Saudi Minister of Commerce Dr. Majid al-Qasabi reiterated his nation's commitment to active engagement within the WTO, emphasizing the imperative of generating favorable outcomes to bolster confidence in the multilateral trading arena.

Against a backdrop of formidable challenges, al-Qasabi underscored the pivotal role of the WTO in navigating complexities and amplifying the significance of the global trade agenda.

He outlined key priorities including discussions on food security, bolstering the capabilities of developing nations, fostering strategic partnerships, and advancing a trading framework that is both efficient and sustainable.

UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi emphasized that his country will continue to support the multilateral trading system overseen by the WTO, believing it to be a driver for sustainable growth of the global economy and beneficial to improving the lives of people around the world.



Dollar Rises ahead of Fed; Turkish Lira Drop Reins in G10 Currencies

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
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Dollar Rises ahead of Fed; Turkish Lira Drop Reins in G10 Currencies

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo

The dollar rallied on Wednesday ahead of the Federal Reserve's decision on interest rates, but retreated from the day's highs after markets stabilized from an early shock caused by the detention

of Turkish President Tayyip Erdogan's main rival.

Traders are also digesting the Bank of Japan's earlier decision to hold interest rates steady, while the Fed's policy decision later will be crucial for investors eager to know what the central bank makes of Trump's policies and their impact on the US economy, and how that affects the rate outlook.

Fed policymakers are widely expected to keep rates on hold, and will also release new economic projections at the conclusion of the meeting later in the day, Reuters reported.

Feeding into an earlier rally in the dollar was news out of Turkey which saw the lira briefly tumble by the most in a day on record, rippling through major currencies as investors shifted into safe-haven assets.

By 1226 GMT, the euro was down 0.3% versus the dollar to $1.091, having fallen as much as 0.6% earlier. Even so, it remains near a five-month high of $1.0955 scaled in the previous session.

"The news from Turkey is having an impact on G10 currency markets and risk appetite in general," said Jane Foley, head of FX strategy at Rabobank.

"But I would think some of the initial impact of what's happened will begin to filter out from some of the euro trade once the market has become a bit more accustomed to it."

The yen weakened against the dollar, which rose 0.3% to 149.805 in volatile trade as investors mulled the BOJ decision to hold rates steady and comments from Governor Kazuo Ueda .

The widely expected BOJ decision underscored policymakers' preference to spend more time gauging how mounting global economic risks from higher US tariffs could affect Japan's fragile recovery.

"The decision to leave monetary policy unchanged itself is not a surprise, so its impact on exchange rates is limited. However, the earlier-than-usual timing of the announcement seems to have led financial markets to initially interpret that the BOJ (did not consider) bringing forward a rate hike," said Hirofumi Suzuki, chief FX strategist at SMBC.

Adding to nervousness among investors, Israeli airstrikes pounded Gaza overnight, while US President Donald Trump and Russian President Vladimir Putin failed to reach an agreement on a Ukraine ceasefire.

The more risk-sensitive currencies edged lower, with sterling down 0.2% at $1.29795, not far from the previous session's four-month high of $1.3010, while the Australian and New Zealand dollars fell 0.4% and 0.5%, respectively.

Against a basket of currencies, the dollar ticked up 0.2% to 103.55, coming off a five-month low of 103.19 on Tuesday.

The dollar has fallen nearly 4% for the month, pressured by Trump's erratic approach to tariffs and as fears mount of a recession in the world's largest economy.

Traders are currently pricing in nearly 60 basis points of Fed rate cuts by the year end.

"The March FOMC meeting will likely be all about policy uncertainty. The Fed will almost certainly stay on hold, emphasising patience over panic," said analysts at Bank of America Securities.

"The (Summary of Economic Projections) forecasts and distribution of risks are both likely to reflect stagflation: weaker growth and higher inflation."