World Trade Organization (WTO) has warned that the global economic growth is under threat as the world’s economic super powers trade tit-for-tat trade sanctions.
In its assessment report of the growing tariff war between the US, European Union and China, the WTO said the global system of agreed trade rules was at potentially large risk.
The WTO said at a juncture where the global economy is finally beginning to generate sustained economic momentum following the financial crisis, the uncertainty created by a proliferation of trade restrictive practices could place the economic recovery in jeopardy.
The threat of a tariff war was sparked after US President Donald Trump ordered tariffs on steel and aluminium imports from the European Union and China.
Both China and the European Union responded with the threat of import tariffs on US cars and agricultural goods totaling hundreds of billions of pounds.
The worrying trend is the increase in trade restrictive measures which has come at a time of increasing trade tensions and associated rhetoric.
The WTO report said new sanctions affected 74.1billion dollars of trade which is one and half times higher than over the same period a year earlier.
The WTO report says G20 economies must use all means at their disposal to de-escalate the situation and promote trade recovery.
Source: Radio Pakistan