Previous forecasts of WTS have suggested that the amount of trade in the goods between the two largest economies in the world could be reduced to 80%.
The general director of the World Trade Organization of Ngozi Prajo-Vera said that aggravation of trade tension between the United States and China is significant risks for the global economy. This was reported by the WTO press service on Thursday, April 10.
According to him, initial WTO forecasts indicate that the amount of trade in the goods between the two largest economies in the world could be reduced to 80%.
“This step -step in response between the United States and China – countries that cost almost 3% of the world’s trade – have greater consequences that can seriously harm the global economic prospects,” he said.
Among the main threats is the breakdown of world trade in geopolitical lines. Such a distribution can lead to a long -term reduction in the real GDP world by almost 7%.
The WTO director also emphasized that not only the United States and China, but also other countries, especially the least developed, will affect the negative consequences of macroeconomic. He calls a redistribution of trade that requires a global coordinated response to an urgent threat.
“It is critical that the community of the world cooperates together to maintain the openness of the international trading system. WTO members have the opportunity to protect the system based on policies. WTO is an important platform for dialogue. Resolving these issues within the cooperation framework is required,” he said.
Remember that US president Donald Trump said the United States has put a pause of additional tariffs for a number of countries. For almost everyone, 10% duty will be valid. At the same time, he ordered to increase tariffs against China by 125%, “given the disrespect that China has shown in markets in the world.”
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Source: korrespondent
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