WTO Warns Global Trade System Is at a Critical Juncture

The World Trade Organization has warned that the global trading system is facing a major period of disruption and needs to adapt to changing economic and geopolitical conditions.

In its World Trade Report 2026, the WTO said existing trade rules have struggled to keep pace with changes including the growing role of digital trade and artificial intelligence, increased government intervention in economies, shifting economic power and rising geopolitical tensions.

The organization said stronger multilateral cooperation could increase global GDP by around 2.9% and global exports by 17.9% by 2050, compared with the report’s baseline scenario. The WTO also modelled significantly larger economic losses if the international trading system becomes increasingly fragmented.

One of the concerns highlighted by the WTO is the growing use of tariffs, subsidies and other trade measures as countries respond to economic and strategic pressures. The organization says these developments are making international trade policy less predictable.

The report also points to the changing nature of global commerce. Digital services, artificial intelligence, global supply chains and environmental technologies are creating new forms of international trade that were not fully reflected when many existing rules were established.

According to the WTO, around 72% of global merchandise trade still takes place under its most-favoured-nation terms, showing that the multilateral framework remains widely used. However, the organization says its rules and practices need to evolve rather than simply remain unchanged.

The WTO’s annual Public Forum is currently bringing together governments, businesses, academics, civil-society groups and international organizations in Geneva to discuss the future of global trade. More than 4,600 participants are expected to take part in this year’s forum.

The latest report places reform of global trade rules at the centre of international economic discussions, with the WTO calling for cooperation that can address emerging technologies, changing supply chains and new geopolitical realities while maintaining predictable international trade.