South-South Trade Growth Accelerates, Reshaping Global Dynamics

South-South trade growth has accelerated, reaching USD 7.2 trillion in merchandise exports in 2025. This now accounts for 27.8% of global exports, a near doubling of its share from 14.3% just twenty years ago. The expansion represents a 4.8-fold increase over that period, growing almost twice as fast as trade between developing and developed economies. A new report launched on 29 October at the 10th Global Review of Aid for Trade shows this expanding role in global trade flows.

Triangular cooperation as a strategic framework

To sustain this momentum, the report positions triangular cooperation as a key strategic framework. This model involves partnerships among developing economies, supported by developed nations or international organizations. It can help address persistent trade barriers by providing complementary channels for knowledge, expertise, and resources.

Cooperation supported by international bodies is seen as a way to facilitate knowledge sharing and strengthen trade-related institutions. The report links these efforts directly to strengthening developing economies' ability to participate in international trade. It urges policymakers to use such cooperative frameworks to build capacity and secure market access beyond traditional North-South routes. The policy focus is squarely on widening market participation.

Case studies demonstrate practical implementation

Six case studies of partnerships among developing economies, contributed by the Enhanced Integrated Framework (EIF) and the Standards and Trade Development Facility (STDF), illustrate practical implementation. They show how cooperative frameworks enhance market access and build trade capacity. The publication also examines statistical frameworks needed to capture non-financial contributions like technical assistance and knowledge exchange.

The report was co-organized by the WTO, UNOSSC, and Barbados. At its launch, WTO Deputy Director-General Xiangchen Zhang highlighted the importance of complementary development cooperation. "South-South and triangular cooperation is an important complement to traditional North-South cooperation," Zhang said. "It brings additional expertise, resources and partnerships to support trade and development."

Dima Al-Khatib, Director of UNOSSC, called for a 'fresh look' at partnerships to broaden opportunities for shared development goals. Matthew Wilson, Ambassador of Barbados to the WTO, emphasized the growing importance of these cooperation models. The WTO and UNOSSC jointly reaffirmed their commitment to strengthening such partnerships for developing economies.

Opportunities and concentration challenges

Despite the growth, trade remains heavily concentrated in Asian developing economies. The report identifies significant untapped potential for greater regional integration in Africa and in Latin America and the Caribbean. These regions offer substantial opportunities for future South-South trade growth.

The report concludes with a call for policymakers to actively adopt and promote these cooperative trade frameworks. The goal is to build resilience and ensure development gains extend beyond established North-South channels.