WTO Report Highlights AI’s Impact on Global Trade

The World Trade Organization (WTO) released on Thursday, November 21, a significant report titled “Trading with Intelligence: How AI Shapes and is Shaped by International Trade,” Xinhua revealed yesterday. The report examines the transformative potential of artificial intelligence (AI) on global trade dynamics.

Key findings indicate that AI could substantially reduce trade costs, enhance trade in services, and boost the market for AI-related goods. It emphasizes AI’s ability to automate logistics, streamline customs processes, and improve regulatory compliance, potentially leveling the playing field for developing economies and small businesses.

However, the report raises concerns about a widening “AI divide” between high- and low-income countries. It warns that while high-income economies may reap the most productivity gains, lower-income nations risk falling further behind without coordinated efforts to bridge the gap.

WTO Director-General Ngozi Okonjo-Iweala highlighted the need for global cooperation to address regulatory fragmentation in AI, which could impede trade opportunities, particularly for micro, small, and medium-sized enterprises. The report calls for a unified approach to ensure that the benefits of AI are equitably distributed across all economies, reinforcing the WTO’s role in facilitating negotiations and establishing trade rules.