U.S. trade chief Tai says world can’t return to 2019 trading system By Reuters

© Reuters. From the file: US Trade Representative Catherine Taye addresses the Geneva Graduate Institute on the role of the World Trade Organization in the global economy and US policy priorities ahead of the 12th Ministerial Conference in Geneva, Switzerland.

(Reuters) – U.S. Trade Representative Catherine Taye said on Thursday that global trade policy makers should not try to re-create the pre-pandemic trading system, but that they should build one that is more resilient, sustainable and supportive of higher standards of living.

Speaking at a virtual panel of the World Economic Forum, Tay warned against a seemingly underdeveloped “return to normality” after two years of disruption caused by COVID-19.

“I think it’s time for us to admit that our goal really shouldn’t be to try to go back to what the world was like, say in 2019, but to take lessons and lessons that have been hard-earned and very painful lessons over the last couple of years and take this opportunity to build something Different and better.

The key, she said, is to strengthen and diversify supply chains.

Sultan Ahmed bin Sulayem, head of giant DP World, told the forum that it could take up to two years to return to normal once the pandemic is over.

Intel Corp. Addressing the same forum, NASDAQ Chairman Pat Gelsinger said the pandemic has demonstrated a clear need for more resilient and diversified supply chains. This should include stress testing of critical components in the way that stress testing of financial institutions improved after the 2008-2009 financial crisis.

He said Intel had been striving, aided by US and European incentives to subsidize chip manufacturing, for a “globally distributed resilient supply chain where the market is not uniquely dependent on any other supply, or any single location, but there is also always duplication of supply chains available.” all over the world “.

Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, told the forum that the current turmoil in the global economy offers an opportunity to diversify the supply chains of developing countries that have not benefited from previous waves of globalization.

“We see shifts in Vietnam, Laos, Cambodia, Bangladesh, Ethiopia, etc. in our data and I call it a way to reglobalise and use this globalization and the supply chain to solve some of the inequality problems,” Okonjo-Iweala said. .

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