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.



Oil Prices Climb on Short-covering, but Tariff Concerns Linger

The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
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Oil Prices Climb on Short-covering, but Tariff Concerns Linger

The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo

Oil prices climbed on Tuesday as investors took advantage of the previous day's losses to cover short positions, although concerns persisted over economic headwinds from tariffs and US monetary policy that could dampen fuel demand.

Brent crude futures rose 36 cents, or 0.5%, to $66.62 a barrel at 0421 GMT. The US West Texas Intermediate crude contract for May, which expires on Tuesday, was at $63.73 a barrel, up 65 cents, or 1%.

The more actively traded WTI June contract was up 0.7%, or 43 cents, at $62.84 a barrel, Reuters said.

Both benchmarks dropped more than 2% on Monday, as signs of progress in nuclear deal talks between the US and Iran helped ease supply concerns.

"Some short-covering emerged after Monday's sharp sell-off," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.

"However, concerns about a potential recession driven by the tariff war persist," he said, predicting that WTI will likely trade in the $55–$65 range for the time being given ongoing uncertainty related to tariffs.

On Monday, US President Donald Trump repeated his criticism of Federal Reserve Chair Jerome Powell and said the US economy could slow unless interest rates were lowered immediately.

His comments about Powell fueled worries about the Fed's independence in setting monetary policy and the outlook for US assets. Major US stock indexes dropped and the dollar index slid to a three-year low on Monday.

"The growing uncertainty surrounding US monetary policy is expected to negatively impact financial markets and the broader economy, raising fears that it could lead to a decline in crude oil demand," Kikukawa said.

A Reuters poll on April 17 showed investors believe the tariff policy will trigger a significant slowdown in the US economy this year and next, with the median probability of recession in the next 12 months approaching 50%.

The US is the world's biggest oil consumer.

Progress in talks between the US and Iran, which on Saturday agreed to begin drawing up a framework for a potential nuclear deal, could also weigh on oil prices and reduce supply concerns as the Middle Eastern country is a major producer.

"Our view that Iran's oil exports face imminent downside risks due to the enforcement of US sanctions has eased given ongoing talks between US and Iran," Vivek Dhar, an analyst at Commonwealth Bank of Australia, said in a note, adding that US sanctions relief was potentially on the table.

Meanwhile, Russia's economy ministry has cut its forecast for the average price of Brent crude in 2025 by nearly 17% from what it saw in its September calculations, according to documents obtained by Reuters.

US crude oil and gasoline stockpiles were expected to have fallen last week, while distillate inventories likely rose, a preliminary Reuters poll showed on Monday, ahead of weekly reports from the American Petroleum Institute and the Energy Information Administration.