US President Donald Trump’s worldwide tariff Salvo performed a overall contraction of about 1 percent in the global trading versions this year, warning the WTO chief on Thursday.
After Trump on Wednesday, a blitz of targeted Harshar-to-approved levy was unveiled in countries around the world, Nogzi Okonzo-Ewela warned that measures would “be sufficient implications for the possibilities of global trade and economic growth”.
Trump slapped 10 percent of import duties on all countries and added too much levy on imports from dozens of specific countries – including top trade partners China and the European Union – to add to the already imposed tariff since returning to their power in January.
“While the situation is developing rapidly, our initial estimates show that these measures introduced since the onset of the year can lead to a overall contraction of about 1 percent in the global trade trade volume this year,” the director-general of the World Trade Organization.
This, he said, will represent a drop of about four percent marks from the previous launch of the World Trade Organization.
Okonjo-Iwela urged the members of the WTO to manage stress resulting in the US measuring responsibly.
“I am deeply concerned about this decline and a tariff is likely to increase in a tariff war with a cycle of ventilative measures that causes further decline in business.”
Okonjo-iWeala stressed that despite America’s measures, “the vast majority of global trade” still flows under the so-called country-nation (MFN) position of the World Trade Organization, which prevents countries from discriminating between its business partners.
“Our estimates now indicate that this part is currently 74 percent, below 80 percent at the beginning of the year,” he said.
“WTO members should stand together to protect these benefits.”
Okonzo -Ivella highlighted the fact that “the WTO was established to serve properly in such moments – as a platform for dialogue, to prevent business conflicts from growing, and to support an open and predicted trading environment”.
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