Guterres: The International Trade System is "On the Brink of Collapse"

UN Secretary-General Antonio Guterres stated on Wednesday that "the international trade system is on the brink of collapse, and the international financial structure has become outdated and unfair for developing countries." Guterres made this remark during a speech at an event marking the 60th anniversary of the establishment of the United Nations Conference on Trade and Development. He noted, "The international financial structure is outdated, ineffective, and unjust. It has failed to ensure the security of debt-laden developing countries," adding that the international trade system faces issues in all areas and is on the verge of fragmentation. He pointed out that trade has turned into a "double-edged sword," serving as a source of both prosperity and inequality, as well as interdependence, economic innovation, and environmental degradation. He further stated, "The work of the United Nations Conference on Trade and Development is crucial because it is undermining multilateral cooperation and strengthening fragmentation forces. Since 2019, the number of new trade barriers imposed annually has tripled, most of which are due to geopolitical competition, regardless of their impact on developing countries. The world cannot afford to be divided into competing blocs."