Global leadership is changing – so is trade

As the G20 presidency moves from Indonesia to India, Brazil, and now South Africa, the Global South has been at the forefront of shaping international trade and economic cooperation.

• Global South leadership is reshaping trade and economic cooperation

• Regional integration and South-South trade offer new pathways for development

• UN Trade and Development (UNCTAD)calls for trade rules that support long-term growth and resilience

Speaking at the G20 Foreign Ministers Meeting session on geopolitics in South Africa on 20 February, UN Tade and Development (UNCTAD) Secretary-General Rebeca Grynspan emphasized that the past four years have demonstrated the potential of multipolarity to strengthen, rather than weaken, multilateralism.

“This year marks the final chapter in a remarkable four-year-cycle – the first time the G20 presidency has resided continuously in the Global South. From Indonesia to India to Brazil, and now to South Africa, we have witnessed the changing face of global leadership and had a glimpse of the future,” Grynspan said.

“These last four years have proven that the right choice is to have multipolarity with multilateralism.”

Opportunities in a shifting economic landscape

While economic uncertainty remains, new trade dynamics are emerging that could foster a more inclusive and sustainable growth. Post-pandemic recoveries have been uneven, with some economies facing stagnation, investment uncertainty, and debt distress. However, South-South trade and regional integration are gaining momentum, creating new avenues for economic resilience.

Initiatives such as the African Continental Free Trade Area (AcFTA), ASEAN, and the EU-Mercosur Agreement showcase how regional and interregional cooperation can complement global engagement and drive new sources of growth.

For these opportunities to materialize, investment must remain a priority. UNCTAD warns that a chain reaction of trade disruptions, inflation and exchange rate volatility – combined with higher borrowing costs – could force more countries to divert resources away from long-term development to service their debt.

Towards a more balanced and inclusive trade system

UN Trade and Development is calling for trade and financial reforms that grant developing countries the policy space needed for industrialization, diversification and long-term investment.

This includes modernizing trade agreements to foster sustainable investment and ensuring that global trade rules work for all economies, not just the largest players.

“We believe in a world with better rules, not a world without them. Maybe now is the opportunity to achieve this as we face the many challenges ahead,” Grynspan stated.

With South-South economic cooperation on the rise, the global economy is at a turning point. By strengthening regional value chains and embracing inclusive policies, countries can turn uncertainty into opportunity – ensuring that economic transformation benefits all.

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