International trade has contributed to economic growth, poverty reduction and private financial flows across countries supported by strong international cooperation, embodied in the multilateral trading system. Recent trade tensions have challenged the way international trade works. Additionally, the COVID-19 crisis will have a significant impact on trade, particularly trade in services. Any response to the crisis that would further advance protectionism will contribute to slow down post-crisis recovery.
Despite its considerable achievements, the multilateral trading system faces challenges today on a scale unseen for decades. Over the past two years, Governments have introduced trade restrictions covering a substantial amount of international trade. This trend needs to be reversed. Governments need to show strong collective leadership and coordination in curbing the imposition of new trade-restrictive measures and reducing the accumulated stock of restrictions.