There is a “clear” risk of a trade war happening because of protectionist policies, the World Trade Organisation chief Roberto Azevedo has said.
The WTO’s director—general did not implicate any countries by name behind such policies, even though he was asked about the effects US President Donald Trump’s “America First” stance could have on the global trading system.
“The risk of a trade war is very clear,” Azevedo told reporters yesterday during a visit in Panama.
“Once a country, whichever one, applies unilateral measures, there is a response from others and we could see a domino effect,” he said.
“The reality is that, at the end of the process, if we have a trade war everybody without exception will be worse off than when it starts.”
Since entering the White House, Trump’s administration has talked about the US trade deficit vis-a-vis several countries, notably China and Mexico.
The president has said he is prepared to tear up the NAFTA free trade deal with Canada and Mexico. Yesterday, reports said the US was looking at probing China for unfair trade practices.
Azevedo was in Panama for meetings with government officials and business representatives.
“The problem we have is a global problem: we have an economy not growing sufficiently fast and that gives rise to temptations of unilateral protectionist actions,” he said.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.