Commonwealth Trade Ministers Meeting: Opening session

Your Excellency, Hon. Selma Ashipala-Musavyi, Minister of International Relations and Trade of Namibia;

Dear Shirley Botchwey, Secretary-General of the Commonwealth;

Excellencies, Ladies and Gentlemen,

It is a great honour to join you today at your Trade Ministers Meeting. I had the privilege to engage with you last time in London and want to thank The Commonwealth for inviting me again this year, as well as the Government of Namibia for the warm and heartfelt welcome and arrangements they have so kindly offered to all of us.

Let me express my great appreciation for your important work in fostering cooperation among your member nations. At a time when global dialogue and multilateral cooperation face growing challenges, your gathering stands as a reminder of the power of partnership. In the face of rising trade tensions, increasing uncertainty, and growing geopolitical pressures, we are reminded that only by working together can we overcome the complex issues before us.

The global economy has been under strain. Since the start of this year, we have seen trade tensions rise, with new tariffs being introduced or announced. If these measures take full effect, they will place a heavy burden on many vulnerable economies. For some smaller and Least Developed Countries, tariff increases could reach more than 50%.

Uncertainty in trade discourages investment, disrupts supply chains, delays decisions, and forces businesses and governments alike to make costly adjustments. This only adds to the difficulties many economies already face in attracting and retaining the investment they need for growth.

Our latest World Investment Report, which we are launching precisely today in Geneva as we speak, shows that while global Foreign Direct Investment increased by 4% to 1.5 trillion US dollars in 2024, the story beneath these figures is more concerning. The kind of investment that supports real economic transformation and does not only pass through economies — meaning productive investment—has fallen sharply, declining by 11% in 2024.

The world’s poorest and most vulnerable economies continue to receive only a small fraction of global investment flows. Sadly, the gap between those who can attract investment and those who cannot, continues to be deep.

Investment aligned with the Sustainable Development Goals has also declined in most sectors, except health. This puts additional pressure on our collective ambition to meet the SDGs. The annual SDG investment gap for developing countries is already estimated at $4.3 trillion, and current trends suggest this gap may grow even larger.

For many developing countries, trade also serves as a vital source of public revenue. Yet growing policy uncertainty and volatile export earnings weaken their fiscal capacity and increase reliance on external debt. Growing debt burdens limit their ability to invest in essential services such as healthcare, education, infrastructure, and climate adaptation. Today, 3.3 billion people live in countries that spend more on servicing debt than on either health or education. And in most developing nations, interest payments exceed climate-related investments.

Excellencies, Ladies and Gentlemen,

These facts present a sobering picture, but they also serve as a call to action.

As we continue our discussions, let us reaffirm our commitment to a strong, rules-based multilateral trading system. Such a system offers predictability and fairness, which has been essential especially for smaller and more vulnerable economies. We must not allow a world where power-based negotiations replace the fairness of multilateral rules.

Of course, the multilateral trading system must also evolve. It must be modernized and reformed to better address today’s realities — from climate change and the digital transformation of our economies to more inclusivity.

We also need a new global investment compact that truly supports sustainable and inclusive growth. This requires:

• Reforming the international financial system.
• Scaling up sustainable finance.
• Bridging the digital divide.
• And updating investment rules to reflect current challenges.

At the same time, we must improve the way global finance supports countries in difficulty. We need:

• Fairer, faster debt restructuring, especially for middle-income countries excluded from concessional financing.
• A greater risk appetite from development finance institutions to catalyze long-term investment.
• And more representative financial governance that reflects today’s economic landscape.

Because trade, investment, and finance are closely connected, these conversations must be central at the upcoming Financing for Development Conference in Seville.

Excellencies,

In closing, let me once again express my deep appreciation for the work of The Commonwealth and for the spirit of cooperation that this meeting represents. We deeply value our longstanding partnership and the Commonwealth’s unwavering support for our shared goals. In times of uncertainty, dialogue and partnership remain our greatest strengths. Spaces like this must be preserved. I also take the opportunity to invite all of you to our next UNCTAD Quadrennial Ministerial Conference that will take place in Geneva in the second half of October.

Thank you for your attention. I look forward to our continued engagement and collaboration.