The director general of the World Trade Organization (WTO), Roberto Azevedo, said on Tuesday (25.9.2018) that a trade war would have serious effects on global economic growth and jobs.
In her speech during a meeting in Berlin for theGerman Industry Day, Azevedo insisted on the Growing trade tensions between China and the United States.
He said the warning lights are on. A continuation of the escalation of tensions would present a greater threat to stability, jobs and the kind of growth we are seeing today, he said.
A global trade war unleashed with a breakdown in international trade cooperation would reduce world trade growth by around 70 percent, and GDP growth by 1,9 percent., Azevedo said.
He insisted that such a case would result in there being no winners in such a scenario and each region would be affected.
He added that the European Union itself would see a 1,7 percent decline in GDP growth and that this clearly cannot be allowed to happen.
The director pointed to several proposals for reforms addressing trade-distorting practices and existing WTO mechanisms for resolving trade disputes, adding that members have to agree on which reforms they want to focus on.
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