Ramaphosa urges WTO to loosen grip on policies, says trade rules shouldn’t work against developing countries

JOHANNESBURG - President Cyril Ramaphosa has called on the World Trade Organization (WTO) to loosen its grip on policies he believes may be stifling economic growth for developing countries.

Ramaphosa made the call on Thursday during the commemoration of the WTO's 30th anniversary, where he also called for the global institution to reform amid a changing global trade landscape.

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The recent announcement of universal tariffs on all imports into the United States (US) caused a global meltdown, raising questions about the oversight role of groups like the WTO.

Academics and analysts from the London School of Economics previously warned that restrictions by the WTO limited the ability of developing countries to adopt preferred trade and industrial policies.

They believe the expansion of multilateral trade rules to include parameters on intellectual property rights, foreign investment and trade in services limited the options that were available to developing countries' governments to intervene in economic activities.

Ramaphosa said that trade rules shouldn’t work against developing countries.

"Governments must be afforded the requisite policy space to enable them to be more responsive to their domestic challenges."

Where there are imbalances, Ramaphosa said the WTO must ensure global trade was predictable and governed by a rules-based system.