WTO Warns Countries Against Adopting Trade Restriction Measures

The World Trade Organization (WTO) has warned member countries from adopting the new trade restriction measures, saying its implementation would have a negative effect on the economy.

The WTO Director-General Dr Ngozi Okonjo-Iweala disclosed this in its Trade Monitoring Report for December.

She said that this new plan by WTO members to introduce restrictions at an increased pace is dangerous.

She added that this would further worsen global economic outlook, particularly on food, feed and fertilizers.

She said, “Members have increasingly implemented new trade restrictions, in particular on the export side, first in the context of the pandemic and more recently in the context of the war in Ukraine and the food security crisis.

“Out of the 78 export restrictive measures on food, feed, and fertilizers introduced since the start of the war in late February, 58 are still in place, covering roughly $56.6 billion of trade.

“As I told G20 Leaders at their summit in Indonesia a few weeks ago, lifting those export restrictions is fundamental to reduce price spikes and volatility and to allow goods to flow to where they are urgently needed.

“Although some of these export restrictions have been lifted, many others persist.”

Okonji-Iweala also revealed that the numbers of restriction is still seen to be on the the increase which is a cause of concern.

She urged members of WTO to cooperate to keep markets open and predictable in order to allow goods to move around the world to where they are needed.

The WTO has over 160 members representing 98 per cent of world trade, with Nigeria a bonafide member since January 1995.