AdvertisementAdvertisementNew: You can now listen to articles. This audio is generated by an AI tool.03 Sep 2025 05:23AM (Updated: 03 Sep 2025 05:29AM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInRead a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST GENEVA: The share of global trade conducted on World Trade Organization (WTO) terms has fallen to 72 per cent, the WTO chief said on Tuesday (Sep 2), calling it the biggest disruption to the international trading system since World War II.Since US President Donald Trump imposed sweeping import tariffs this year, the share of trade carried out under the WTO’s “Most Favoured Nation” principle – which requires members to treat each other equally – has slipped from about 80 per cent, WTO data showed.“We’re experiencing the largest disruption to global trade rules, unprecedented in the past 80 years,” Director-General Ngozi Okonjo-Iweala told Reuters in Geneva at the start of her second term.TARIFF EFFECTS COULD INTENSIFY IN 2026Okonjo-Iweala said the immediate impact of tariffs was muted because companies had stockpiled goods earlier this year, but warned the effect could become clearer in 2026 once inventories are depleted.The WTO in August raised its 2025 global trade growth forecast to 0.9 per cent, up from 0.2 per cent. “Possibly down the line, we’ll begin to see other impacts … but we’ll see next year,” she said.A child sleeps on plastic jerrycans as people queue at the standpipe, where incomplete water connections caused by USAID funding cuts to the NGO Mercy Corps have led to ongoing water shortages, in Goma, North Kivu province, Democratic Republic of Congo, June 16, 2025. (Photo: Reuters/Arlette Bashizi/File Photo)US FUNDING CUTSOkonjo-Iweala voiced concern over Trump administration plans to cut US$29 million in funding for the WTO, which relies on member contributions for its budget. Washington historically covers about 11 per cent of its annual US$232 million budget.“The announcement is concerning … but we’re working with the US Trade Representative,” she said.PUSH FOR REFORM, FISHERIES DEAL CLOSEWTO reform remains a top priority, she said, adding that China had shown some openness to addressing industrial subsidies. “There’s an opening on the part of many members, including China,” she noted.Okonjo-Iweala also confirmed the imminent entry into force of a landmark deal to cut state subsidies for fisheries, which would be the WTO’s first global agreement since 2017. “We are three members away from ratification and I already have those three,” she said, predicting implementation within weeks.Source: CNASign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST