The World Trade Organization (WTO), established on 1 January 1995, is the principal international institution governing the rules of global trade. It administers multilateral trade agreements, provides a forum for negotiations, supports trade-policy review and, within its legal framework, provides dispute-settlement mechanisms. The WTO system is built around principles such as non-discrimination, transparency and predictability. In recent years, geopolitical competition, supply-chain concerns, industrial subsidies and trade restrictions have increased debate about whether the world economy is fragmenting into competing blocs.
Agenda: Addressing trade fragmentation and protectionism in an increasingly polarized global economy
Trade fragmentation occurs when geopolitical tensions and policy choices redirect trade toward politically aligned partners, increase barriers between blocs or weaken confidence in common rules. Protectionism can take the form of tariffs, quantitative restrictions, discriminatory subsidies, local-content requirements or other measures that favour domestic production. Delegates should examine the legitimate policy goals behind some trade restrictions, including national security and economic resilience, while assessing their systemic costs. The discussion may cover supply-chain diversification, rules for subsidies, special and differential treatment for developing economies, trade facilitation, digital trade, standards, green-transition policies and reform of dispute-settlement institutions.
