WTO Warns Of Global Economic Fallout From Escalating U.S.-China Trade Dispute

(MENAFN- KNN India) New Delhi, April 11 (KNN) The Director-General of the World Trade Organisation has issued a stark warning about the intensifying trade dispute between the United States and China, projecting potential severe consequences for the global economy.

According to preliminary WTO projections, bilateral merchandise trade between the world's two largest economies could plummet by as much as 80 percent if current tensions continue to escalate.

The Director-General emphasised that this conflict, involving economies that together account for approximately 3 percent of global trade, threatens to significantly undermine worldwide economic stability.

The WTO analysis indicates that negative economic repercussions would extend well beyond the two primary parties involved.

Developing economies, particularly least developed nations, stand to face substantial collateral damage from this trade conflict.

Of specific concern is the potential fragmentation of global commerce along geopolitical boundaries, with WTO assessments suggesting that a bifurcation of the world economy into competing blocs could reduce global real GDP by nearly 7 percent over the long term.

The Director-General highlighted trade diversion as an immediate threat requiring coordinated international action.

The statement called for WTO members to address these challenges through enhanced cooperation and dialogue rather than continuing the current retaliatory approach.

In concluding remarks, the Director-General underscored the critical importance of preserving the openness of the international trading system.

The statement affirmed that WTO members possess the capability to safeguard the rules-based trading framework, with the WTO itself serving as an essential forum for constructive dialogue and resolution of these pressing issues.

(KNN Bureau)

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