Malaysian official urges WTO reforms to reflect new economic realities

KUALA LUMPUR, July 1 (Xinhua) -- The World Trade Organization (WTO) must adapt to the new realities of the international economy to remain relevant amid intensifying competition and evolving global trade dynamics, according to Malaysian Investment, Trade and Industry Minister Johari Abdul Ghani.

In his keynote address here at the 39th Asia-Pacific Roundtable (APR), organized by the Institute of Strategic and International Studies (ISIS) Malaysia late on Tuesday, Johari said the WTO emerged at a time when lowering trade barriers and expanding market access were widely seen as drivers of economic prosperity and international stability, but the situation has drastically changed due to geopolitical tensions.

"The WTO must be able to adapt to the realities of today's international economy," he said, urging it to continue to serve the needs of every member economy and be able to address discriminatory trade practices wherever they arise.

"Unless it evolves, there is a genuine risk that the WTO gradually loses relevance. Yet at a time of intensifying strategic competition, the need for credible multilateral rules has arguably never been greater. We need institutions capable of reducing uncertainty, managing disputes, and preventing economic tensions from escalating into broader geopolitical conflict," he said.

Johari noted that Malaysia has worked hard to diversify its trade networks to insulate its highly open economy from accelerating global geopolitical risks through greater engagement with non-traditional partners.

"Within the context of the challenges that we face today, economic diplomacy can no longer be pursued in isolation but must be viewed through a broader lens. Similarly, foreign policy can no longer be viewed solely as a mechanism for managing political relationships," he said.

The 39th APR is the flagship annual international conference organized by ISIS Malaysia on behalf of the ASEAN Institutes of Strategic & International Studies network and runs from June 30 to July 2. This year's theme is "Accelerating Agency and Action," and brings together policymakers, diplomats, academics, business leaders and experts to discuss key geopolitical, economic and security issues affecting the Asia-Pacific region. Enditem