President Santiago Peña Palacios of Paraguay delivered a compelling address at the latest edition of the WTO Presidential Lecture on January 31, emphasizing the pivotal role of the World Trade Organization (WTO) in fostering peace and prosperity through free trade.
Amid the current global challenges faced by the multilateral trading system, President Peña underscored the unique responsibility of middle powers like Paraguay to act as bridge-builders, fostering dialogue and consensus to contribute to a more stable and cooperative international order.
President Peña highlighted Paraguay’s status as one of the most open economies in the world, firmly rooted in the belief that “free commerce is a bedrock of civilized peoples.” As the second most open economy in Latin America, Paraguay boasts minimal trade restrictions, a straightforward tax system, and a pro-business stance. Given its landlocked geography and primary role as an agricultural exporter, producing food for ten times its population, Paraguay has no alternative but to embrace global trade.
“We understand both the opportunities and vulnerabilities of global trade. Our experience has shown us that the development path requires not isolation but deeper integration into global markets, guided by clear, fair, and enforceable rules. For middle-sized economies like Paraguay, the multilateral trading system is not just one option among many; it is essential for our development and prosperity. This is why I believe that any crisis of multilateralism can only be solved by one thing: more multilateralism,” President Peña declared.
He further emphasized that Paraguay’s commitment to the WTO is rooted in its experience as a stable democracy with consistent economic policies and its unique perspective as a bridge between countries with varying levels of development. This commitment also stems from a deep conviction that multilateralism remains the most effective path to sustainable development.
Reflecting on the historic decision to establish multilateral institutions after the Second World War, President Peña noted that during challenging times, organizations like the WTO have a unique opportunity to demonstrate their crucial importance and justify their existence.
“The creation of an international organization that seeks to bring order to the chaos of global commerce was not only a sound decision but a brilliant and enduring insight. The WTO has been, is, and will continue to be a great idea,” he added.
In his address to WTO ambassadors, heads of intergovernmental organizations, representatives of non-governmental organizations, business leaders, and academia, President Peña also stressed the need for WTO members to be proactive in overcoming the challenges faced by the system.
He called for meaningful progress on agricultural reform to achieve less distorted markets and enhance food security, the restoration of a fully functioning dispute settlement system accessible to all members, and the implementation of environmental measures that enhance rather than hinder international trade. He also emphasized the importance of securing justice, fairness, and equality, the fundamental principles of international commerce.
