Global trade resilient in face of 1 year of war in Ukraine: WTO

By Ovunc Kutlu

ISTANBUL (AA) - The World Trade Organization (WTO) said Thursday that global trade has remained resilient one year into Russia's ongoing war on Ukraine.

"Global trade has held up well in the face of the war in Ukraine. Despite the devastation we have seen one year on, trade flows remained open," WTO Chief Economist Ralph Ossa said in a statement.

"Sharply higher food prices and supply shortages have not materialized thanks to the openness of the multilateral trading system and the cooperation governments have committed to at the WTO," he added.

The intergovernmental organization said prices for goods greatly affected by the war in Ukraine increased less than expected at the beginning of the war.

Among most affected saw price increases of between 4.4% for palladium and 24.2% for maize, it noted, adding: "While these price increases are substantial, they are significantly lower than the gloomiest predictions."

However, Ukraine's exports plummeted 30% last year in value terms, and its exports of cereal, which are key to the food security of many African economies, declined by 14.9%, according to the WTO.

Russia's exports expanded by 15.6% in value terms due to a price increase in fuels, fertilizers, and cereals, it said, noting: "However, estimates suggest Russia's export volume may have declined slightly. Trade flows are sharply down for industrial goods such as motor vehicles, pharmaceuticals or aircraft, where sanctions are more restrictive."