The Organization for Economic Co-operation and Development (OECD) has cautioned about growing threats to global trade, citing rising protectionism and geopolitical uncertainties as major concerns. These factors, the OECD warns, could significantly dampen international trade flows and hinder economic growth worldwide.

Key Concerns Highlighted by the OECD

• Rising Protectionism: An increase in trade barriers, such as tariffs and quotas, could disrupt global supply chains and reduce overall trade volumes.
• Geopolitical Tensions: Political instability and conflicts in various regions could create uncertainty and discourage cross-border investment and trade.
• Policy Uncertainty: Unpredictable policy changes and shifts in trade agreements could undermine business confidence and hinder long-term planning.

OECD Recommendations

To mitigate these risks, the OECD recommends that countries:

• Resist Protectionist Measures: Avoid implementing new trade barriers and work towards reducing existing ones.
• Promote International Cooperation: Strengthen collaboration on trade-related issues to address shared challenges.
• Foster Policy Transparency: Ensure that trade policies are predictable and transparent to enhance business confidence.

The OECD emphasizes the importance of open and fair trade for promoting economic growth and development. It urges countries to adopt policies that support a rules-based international trading system.