"In the case of an agreement involving managed trade, with China committed to import more from the US, reducing imports from elsewhere can be an issue," Changyong Rhee, head of the IMF Asia Department, told reporters during the fund's spring meetings with the World Bank.
"There could be negative impacts on other countries whose exports to China would be crowded out by US exports." Washington and Beijing have been in talks since the start of the year to resolve their nine-month trade war.
Rhee also said Friday that formal bilateral purchase agreement would be a departure from the prevailing rules governing international trade.
"Likewise if the deal involves preferential access for the US to the Chinese markets, this could lead to broader worries about the future of the multilateral trade system," he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)