Jay Louvoin/ Studio Casagrande
Increasing trade conflicts between the United States and China present a significant threat of a steep drop in bilateral trade. "Our initial projections suggest that goods trade between the two nations may drop by 80%," stated the head of the organization, Ngozi Okonjo-Iweala.
The United States and China collectively represent around 3% of total global trade.
"The reciprocal responsibilities between the two largest economies globally ... could have extensive implications that might result in a significant decline in the growth prospects of the world economy," said Okonjo-Iweala.
A significant worry is the possible division of global trade based on political alliances.
Okonjo-Iweala cautioned that the bifurcation of the world economy into two blocs might result in a nearly 7% long-term reduction in global GDP in real terms.
She stated that “it is essential for the global community to collaborate in maintaining an open international trading system. The WTO serves as an important forum for discussion. It is important to tackle these challenges with a sense of collaboration.”
source: wto.org
The United States and China collectively represent around 3% of total global trade.
"The reciprocal responsibilities between the two largest economies globally ... could have extensive implications that might result in a significant decline in the growth prospects of the world economy," said Okonjo-Iweala.
A significant worry is the possible division of global trade based on political alliances.
Okonjo-Iweala cautioned that the bifurcation of the world economy into two blocs might result in a nearly 7% long-term reduction in global GDP in real terms.
She stated that “it is essential for the global community to collaborate in maintaining an open international trading system. The WTO serves as an important forum for discussion. It is important to tackle these challenges with a sense of collaboration.”
source: wto.org