Durban: Amidst the global economy facing heightened uncertainty and complex challenges, the Deputy Minister of Finance, Dr David Masondo, has emphasised the importance of fair trade. The global economy is experiencing ongoing wars and conflicts, geopolitical and trade tensions, disruptions to global supply chains, high debt levels, and frequent extreme weather events and natural disasters, which affect economic growth, financial and price stability.

According to South African Government News Agency, to address the existing and emerging risks to the global economy, the Group of Twenty (G20) Finance Ministers and Central Bank Governors (FMCBG) meeting that was held in Durban this week, pledged to strengthen multilateral cooperation. The meeting recognised the importance of the World Trade Organisation (WTO) to advance trade issues and the agreed-upon rules in the WTO as an integral part of the global trading system.

The meeting also acknowledged that the WTO faces challenges and requires meaningful, necessary, and comprehensive reform to improve all its functions through innovative approaches. This would ensure the WTO remains relevant and responsive to today’s realities.

Dr David Masondo highlighted the interconnectedness of the global economy, stating, “We are living in a globalised economy. Multinational companies are producing in different sovereigns in geographic spaces and as they produce you don’t want them to find it difficult to have access to markets. If it is difficult for them to get access to the market, they are not going to realise profits and they won’t reinvest into the growth of the economy.”

The Deputy Minister further expressed the importance of a rules-based system and running the global economy through multilateral platforms, underscoring the critical role of fair trade in fostering economic growth and stability.