WTO Calls for Trade Reform Amid Rising Global Uncertainty

Speaking at the 24th Seoul International Forum on Trade Remedies, WTO Deputy Director-General DJ Nordquist said the global trading system is undergoing some of the most significant changes seen in decades.

The World Trade Organization has called for renewed efforts to modernize global trade rules as economies face increasing uncertainty from geopolitical tensions, shifting trade policies and supply chain disruptions.

Speaking at the 24th Seoul International Forum on Trade Remedies, WTO Deputy Director-General DJ Nordquist said the global trading system is undergoing some of the most significant changes seen in decades. While trade continues to grow, she argued that many of the rules governing international commerce have not kept pace with the realities of a rapidly changing global economy.

Addressing government officials, trade experts and industry representatives, Nordquist noted that concerns about economic security, supply chain resilience and market distortions have become increasingly prominent in policy discussions around the world. These concerns have contributed to growing pressure on the multilateral trading system and raised questions about whether existing frameworks remain fit for purpose.

She said many countries believe the balance of rights and obligations established when the WTO was created has shifted over time, creating frustration and leading to policy responses that challenge long-standing trade norms. According to Nordquist, the inability of WTO members to update rules and resolve differences has played a significant role in the tensions currently affecting global trade.

Trade growth remains strong despite geopolitical pressures

Despite concerns about fragmentation and economic rivalry, Nordquist pointed to data showing that global trade has remained remarkably resilient.

According to WTO estimates, global trade expanded by approximately 4.7 percent in 2025, significantly outpacing global economic growth and exceeding earlier forecasts that had predicted a slight contraction. Trade growth is expected to moderate in the coming years, though projections still point to continued expansion.

She highlighted several recent examples where international trade helped countries adapt to major disruptions. During the COVID-19 pandemic, global supply chains adjusted to increase the production and distribution of critical medical supplies and vaccine components sourced from multiple countries. Similar flexibility was seen when countries affected by disruptions to grain supplies and energy markets were able to secure alternative sources through international trade networks.

Nordquist argued that these examples demonstrate the continued value of a rules-based trading system that provides transparency and predictability while allowing businesses and governments to diversify supply sources during periods of disruption.

She also stressed that concerns about concentrated supply chains and overdependence on a small number of suppliers have become important drivers of current trade debates. Issues involving critical minerals, semiconductors and strategic industries have intensified discussions about economic resilience and national security.

Growing use of trade remedies reflects changing trade landscape

A significant portion of Nordquist's remarks focused on the increasing use of trade remedy measures, including anti-dumping duties, countervailing duties and safeguards.

According to WTO data, trade remedy activity increased substantially during 2025, with more countries launching investigations and applying measures than in previous years. Four countries — Cambodia, Sri Lanka, Nepal and Iceland — notified the WTO that they had established new investigating authorities to conduct trade remedy proceedings, continuing a broader trend seen in recent years.

As of the end of 2025, 82 WTO members had established trade remedy authorities, compared with 72 a decade earlier. The increase reflects the growing importance many governments place on tools designed to address unfair trade practices and sudden import surges.

Nordquist described trade remedies as a foundational part of the trading system because they provide countries with WTO-authorized mechanisms to respond to market distortions while maintaining confidence in open trade. At the same time, she acknowledged that modern challenges such as overcapacity, industrial subsidies and evolving forms of government intervention are creating questions that existing rules do not always address clearly.

She argued that these issues present an opportunity for WTO members to revisit and update trade rules in a way that reflects contemporary economic realities. Areas such as subsidies, state-owned enterprises and industrial policy are increasingly central to discussions about creating a more level playing field in international commerce.

Nordquist concluded by emphasizing that while reform will be difficult, there is growing recognition among WTO members that change is necessary. She said efforts to identify common ground and modernize the system will be essential if the WTO is to continue providing the stability, predictability and benefits that have supported global trade for decades.