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WTO chief warns against escalation of trade tensions

AFP  |  Berlin 

Trade Organisation warned Monday against a damaging "escalation" of trade tensions between the and other major economies, following a divisive

Trans-Atlantic and other trade wars would have "a long-term impact on the global economy," he said at a meeting with German and leaders of the IMF, Bank and other international institutions.

"We must stop this escalation of tensions, the tit-for-tat process is not going to be helpful... new sectors will be brought into the picture, which is something that will harm everyone," he said.

The EU has vowed to retaliate against US imposed by US Donald Trump, and tensions worsened at a in after Trump rejected an attempt to write a consensus statement and bitterly insulted the Canadian host.

The joint communique which Trump rejected had vowed that members would reform multilateral oversight of commerce through the WTO and seek to cut tariffs.

Azevedo warned that "the rising trade tensions risk a major economic impact, undermining the strongest sustainable period of trade growth since the end of the financial crisis.

"But, more than that, the systemic effects could be very damaging, risking a long-term impact on the global economy." The US came under fire at the contentious of leading economic powers for his "America First" protectionist drive.

Trump lashed out again at US allies Monday in messages focusing on "massive trade surpluses" that he said the has endured "for decades" with its closest allies.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, June 12 2018. 01:10 IST