WTO Chief Warns US-China Trade War Could Lead to 80% Decline in Bilateral Trade
The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, has issued a stark warning about the escalating tariff war between the United States and China, suggesting it could result in an 80% reduction in trade between the two global economic powerhouses, with severe repercussions for the world economy.
In a statement made on Wednesday, Okonjo-Iweala emphasized that the trade dispute between the US and China, which together account for roughly 3% of global trade, could significantly disrupt not only their bilateral relations but also the broader international trading system.
“The escalating trade tensions between the United States and China pose a significant risk of a sharp contraction in bilateral trade,” Okonjo-Iweala said. “Our preliminary projections suggest that merchandise trade between these two economies could decrease by as much as 80 percent.”
The WTO Director-General stressed the importance of international cooperation in addressing the issue, highlighting the critical role that the WTO plays in maintaining a rules-based global trade system. “It is critical for the global community to work together to preserve the openness of the international trading system,” she added.
Okonjo-Iweala underscored that WTO members have the capacity to protect global trade through collaborative efforts and dialogue, urging the resolution of these trade disputes within a cooperative framework to avoid exacerbating the global economic crisis.
As the US-China tariff war intensifies, the international community is on high alert about the potential for widespread economic disruption. If left unchecked, the trade conflict could lead to a dramatic contraction in global trade, impacting markets and economies around the world.
