Multilateralism and trade
As the world navigates multiple, overlapping crises - from wars and climate disruptions to energy insecurity and fragile supply chains - trade remains a powerful enabler of sustainable development. Developing economies have demonstrated resilienceThe ability of a system, community or society exposed to hazards to resist, absorb, accommodate, adapt to, transform and recover from the effects of a hazard in a timely and efficient manner, including through the preservation and restoration of its essential basic structures and functions through risk management -—
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—-., maintaining a stable two fifths share of global exports in goods and services. Yet this overall strength conceals persistent disparities. LDCsLeast developed countries remain far from achieving SDGSustainable Development Goal target 17.11, constrained by structural challenges that limit their integration into global markets. Services trade offers promising new pathways, particularly in digital and knowledge-intensive sectors. But its benefits are unequally shared: over half of all services exports from developing economies are generated by just five economies. Meanwhile, tariff escalationHigher tariffs on processed goods than raw materials from which they are produced. in high-value sectors, such as green technologies, continues to disadvantage countries seeking to diversify and move up the value chain.
These patterns highlight the need for a more inclusive and development-focused global trading system. Trade should be a force for shared prosperity, not geopolitical rivalry, as argued in the UNCTAD SG’s report ahead of UNCTAD 16 -—
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—-. Ensuring fairer rules, broader participation and stronger international cooperation will be essential to expand opportunities and make trade work for all, especially for countries still striving to overcome structural barriers and fully participate in the global economy. These goals were stated in the UNCTAD Bridgetown Covenant -—
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—- and remain relevant today; the following sections describe related challenges:
- Attaining the sustainable development goals through trade
- Most developing economies lost market share in services exports over the last decade; only a few leading exporters thrive
- The multilateral trading system has reduced tariffs but not tariff escalation
Global exports of goods and services remain highly concentrated among a few developing economies.
LDCs’ share in global services exports dropped from the 15-year peak 0.7% in 2019 to 0.5% in 2024.
Tariffs on raw critical minerals are lower than on electric vehicles using them.
References
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