The World Trade Organisation (WTO) has revealed what should be expected if the crisis between Ukraine and Russia continues.
Ngozi Okonjo-Iweala, the WTO Director-General stated that the most immediate impact of the Russian invasion was the acute rise of prices of commodities.
The DG said on Tuesday that governments would do well to work with multilateral organisations like WTO to facilitate trade.
“Smaller supplies and higher prices for food means that the world’s poor could be forced to do without.
“This must not be allowed to happen,” Okonjo-Iweala, warned
Russia and ukraine are major suppliers of food, energy and fertilizers. However, due to the ongoing crisis the survival of some countries are now threatened.
Grain shipments through Black Sea ports has been placed on hold since the invasion of Ukraine with possible dire consequences for struggling countries.
Okonjo-Iweala warned that there is a downside effect if the crisis in Ukraine continues. However, she said the forecast are mixed and difficult to assess objectively.
“There is some upside potential if the war in Ukraine ends sooner than expected, but substantial downside risks could emerge if fighting persists for a long time or if the conflict escalates.
“In a crisis, more trade is needed to ensure stable, equitable access to necessities. Restricting trade will threaten the wellbeing of families and businesses globally,” WTO said.
This article was originally published on Nigeria News