World Bank President Ajay Banga on Friday urged developing countries to strike trade deals with the United States as soon as possible, warning that delays could hurt all parties.
During the World Bank and IMF Spring Meetings in Washington, Banga was quoted by news agency AFP saying, “You need to negotiate trade systems with the US at the earliest possible opportunity.If you delay, it hurts everyone.”
His comments come amid growing uncertainty over US trade policy, driven by US President Donald Trump’s erratic imposition of tariffs. Since returning to power in January, Trump has introduced a baseline 10 per cent tariff on most countries, along with targeted 25 per cent levies on imports like steel, aluminium, and cars not made in the US.
Higher duties against several nations, justified on trade imbalance grounds, are currently paused.
The World Bank has been advising developing nations to quickly formalise trade agreements with the US and then shift focus to reducing trade barriers and encouraging regional commerce.
Banga also backed US treasury secretary Scott Bessent’s recent criticism of China’s ongoing status as a World Bank development borrower. “I don’t think he’s wrong,” Banga said, adding that China, given its economic size and strength, should eventually stop borrowing from the International Bank for Reconstruction and Development (IBRD). China borrowed around $750 million last year from the IBRD while also contributing significantly to repayments and donations.
“I’ve brought it down to 750 (million), and I’m trying to figure out a way to deal with China to bring it down further,” Banga said, though any change would require executive board approval.
Banga also responded to US critiques of the World Bank’s policies as “expansive,” calling such scrutiny normal for newly elected governments and adding, “There’s nothing wrong with it.”
On energy access, Banga highlighted the Bank’s goal to help connect 300 million people in sub-Saharan Africa to electricity by 2030.
He stressed the importance of affordable and reliable power, noting that while the Bank currently hesitates to fund nuclear and gas projects, these options may be considered when its energy strategy is reviewed in June.
Finally, he called for job creation in developing countries through local initiatives, not just outsourcing, warning that such imbalances are already fuelling political shifts in advanced economies.
