The World Trade Organization reminded that both powers together represent 3% of world trade and that the confrontation in which they have involved “involves broader implications that can seriously damage the global economic perspectives.”
The general director of the World Trade Organization (WTO), Ngozi okonjo-iwealaHas warned on Wednesday that the increase in commercial tensions between the United States and China exposes bilateral trade to a very strong risk of contraction, up to 80 %, and a fall of 7 % in the GDP of the real world.
The President of the United States, Donald Trump, today announced his decision to “increase the rates to China with immediate effect” to 125 % compared to 104 % in which they were. He also has one 90 -Day Pause When applying rates to those states that have not taken commercial reprisals at their tariff plan.
China He accused on Wednesday of the United States, during a meeting on the WTO, of violating international commercial regulations and weakening the multilateral trading system with his so -rammed “mutual rates”.
China’s delegation noticed that there was no “reciprocity” in the general increase in rates issued by Trump, but a priority of the interests of the United States, to the detriment of the legitimate rights of other states.
He recalled that the United States is one of the most important beneficiaries of the multilateral trading system and that evaluating its benefits, taking into account only commercial deficits or surpluses of goods, is a misleading approach.
China and the US, 3% of World Trade
Okonjo-Iweala reminded that the United States and China together represent 3% of world trade and that the confrontation in which they have involved “involves broader implications that can seriously damage the global economic perspectives.”
He explained that the negative macro -economic effects will not be limited to the United States and China, but will extend to other economies, Especially to less developed states.
For the WTO there is the Danger of a fragmentation of world trade “During geopolitical lines”, that is, a distribution of the global economy into at least two blocks. The result could be the long -term reduction of the real GDP of almost 7%, he said.
“The trade defect is an immediate and urgent threat, which requires a coordinated global response. We urge all WTO members to take on this challenge through cooperation and dialogue,” he has invoked.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
