The writer is director-general of the World Trade Organization
The war in Iran has caused strains in the availability of energy, food and fertiliser, raising the question of whether the world’s response will repeat the early mis-steps of the Covid-19 pandemic. Then, governments turned inward, imposing export bans and restrictions to secure vaccines domestically, even where capacity exceeded needs. Although such measures were later eased, the initial response left poorer countries at the back of the queue, with severe consequences.
A similar pattern followed the outbreak of war in Ukraine, which disrupted fertiliser and food markets. In the first two months of the conflict, WTO secretariat monitoring showed that members implemented 53 trade measures, nearly three-quarters of them restrictive. Export bans and curbs on key commodities — mainly food, fertilisers and fuels — tightened global supply and drove up prices; a smaller number of measures, including reductions in import duties, helped ease pressures at the margin. When countries act to insulate domestic markets, the result is often higher prices and greater volatility globally.