Since the creation of the World Trade Organization (WTO) 30 years ago, income inequalities between countries have been reduced, according to the World Trade Report 2024, published on Monday 9 September by the WTO. Its authors indicate that between 1995 and 2023, global GDP per person, adjusted for inflation, increased by around 65%. The rapid expansion of international trade is a major factor in this, they say.
The reduction in trade costs between 1995 and 2020 has accelerated the income convergence of low- and middle-income economies with high-income economies by 20-35%, according to the report. The WTO insists that opening up to trade rarely exacerbates inequalities within a single country.
On the other hand, it does not deny that certain regions, and therefore individuals, are left out and do not really benefit from trade. In this context, domestic policies can play a role in mitigating these inequalities and ensuring that trade benefits more people.
See the report: https://aeur.eu/f/dcz (Original version in French by Léa Marchal)