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World Bank Head Says Cutting Tariffs Key to Unlocking Global Growth
(MENAFN) World Bank Group President Ajay Banga on Tuesday emphasized the broad benefits of reducing tariffs, while highlighting notable growth in both bilateral and inter-regional trade over recent years.
"For the last 10 years, if you look at the number of bilateral and regional trade deals being signed in the world, they are way in excess of what most people are paying attention to," Banga stated during an event at the 2025 Spring Meetings of the World Bank Group and the International Monetary Fund.
"CPTPP, RCEP, these are all deals involving groups of nations in the last decade, and it has changed the way trade is working in those countries," Banga remarked, mentioning the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, which are two key trade pacts in the Asia-Pacific area.
At a press briefing the previous week, Banga discussed the significant opportunity that remains in strengthening regional economic ties.
"Trade among developing economies is growing rapidly. Nearly half of exports from these countries ... now go to other emerging markets," Banga remarked.
He noted, "Strengthening regional ties through more efficient border processes, lower trade costs, less friction, clear rules of origin, these can boost trade volumes and support more stable and diversified growth."
Banga also drew attention to the fact that many lower-income countries still impose steeper tariffs than wealthier nations, often several percentage points higher on key imports. This, he warned, could a genuine threat of "reciprocal tariffs" and a decline in competitiveness.
"So a broad-based liberalization, not just with favorite partners, can help offset these risks and actually expand market access," he stated, adding that historical trends support the view that open economies tend to experience faster growth and greater resilience during crises.
Banga concluded by noting that ongoing uncertainty and volatility are fueling a more cautious global business climate, and he called on nations to prioritize negotiation and dialogue when addressing trade-related challenges.
"For the last 10 years, if you look at the number of bilateral and regional trade deals being signed in the world, they are way in excess of what most people are paying attention to," Banga stated during an event at the 2025 Spring Meetings of the World Bank Group and the International Monetary Fund.
"CPTPP, RCEP, these are all deals involving groups of nations in the last decade, and it has changed the way trade is working in those countries," Banga remarked, mentioning the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, which are two key trade pacts in the Asia-Pacific area.
At a press briefing the previous week, Banga discussed the significant opportunity that remains in strengthening regional economic ties.
"Trade among developing economies is growing rapidly. Nearly half of exports from these countries ... now go to other emerging markets," Banga remarked.
He noted, "Strengthening regional ties through more efficient border processes, lower trade costs, less friction, clear rules of origin, these can boost trade volumes and support more stable and diversified growth."
Banga also drew attention to the fact that many lower-income countries still impose steeper tariffs than wealthier nations, often several percentage points higher on key imports. This, he warned, could a genuine threat of "reciprocal tariffs" and a decline in competitiveness.
"So a broad-based liberalization, not just with favorite partners, can help offset these risks and actually expand market access," he stated, adding that historical trends support the view that open economies tend to experience faster growth and greater resilience during crises.
Banga concluded by noting that ongoing uncertainty and volatility are fueling a more cautious global business climate, and he called on nations to prioritize negotiation and dialogue when addressing trade-related challenges.
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