The World Trade Organization (WTO) 2025 World Trade Report, points out the revolutionary impact of artificial intelligence (AI) in the redesign of the global economy by 2040. The report found that when countries implement an inclusive policy to bridge the digital divide it would raise the global trade by almost 40 per cent and increase the world GDP by 12-13 per cent with the utilization of AI.
AI's Economic Potential
AI will lower trade expenses, boost effectiveness, and establish ways of new opportunities in goods and services. In case it is implemented extensively, global trade may grow by 34-37 per cent. The report states that low- and middle-income countries might gain a lot in case they develop the digital infrastructure and increase the implementation of AI. By reducing this disparity, the incomes of developing economies might go up by 14-15 per cent.
Role of AI-Enabling Goods
The central role would be played by trade in AI-supporting products, including semiconductors, raw materials, and intermediate goods. This trade has reached USD 2.3 trillion in 2023, which is the foundation of AI development. Inclusive development is important in ensuring availability and cheap supply chains to these goods.
Barriers to Access
High tariffs on goods related to AI are also of concern in the report, reaching up to 45 per cent in some low-income countries. AI goods restrictions have also increased dramatically, by 130 measures in 2012 to close to 500 measures in 2024. These obstacles have the potential to increase disparities in the world by limiting the use of AI.
Workforce Transition and Skills.
The use of AI will transform the labour markets. Governments are encouraged to invest in education and training of workforce by WTO as workers need to be adapting to new demands. Development of skills should be inclusive so as not to enhance inequalities within and between nations.
WTO's Role and Policy Path
Since the year 2012 over 80 trade issues concerning AI have been negotiable at the WTO. There are agreements that are already in existence like the Information Technology Agreement (ITA) and the General Agreement on Trade in Services (GATS), which can be used to reduce barriers and make AI goods and services open to trade.
Looking Forward
The report emphasizes that foreseeable and transparent trade policies are essential to the AI to produce mutual benefits. Cuts in tariffs, overcoming constraints, and fair accessibility may make AI one of the pillars of inclusive international trade and appropriate economic development.
Month: Current Affairs - September 21, 2025
Category: current affairs daily