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BCN-02
WTO-TRADE-US-CHINA
Global trade wars risk ‘millions of jobs’: WTO chief
LONDON, Oct 18, 2018 (BSS/AFP) – Escalating trade wars “pose real risks”
to the global economy, potentially threatening millions of jobs, head of the
World Trade Organization (WTO) Roberto Azevedo warned in a London speech on
Wednesday.
US President Donald Trump is locked in a trade war with China, rolling out
billions of dollars in tariffs in a bid to tackle its trade deficit and rein
in what Washington considers unacceptable Chinese trade practices.
Trump has also targeted the EU, and WTO director general Azevedo told
business heads at the Mansion House speech that there appeared to be “no end
in sight” to the tit-for-tat action, pleading with world leaders to
negotiate.
“A continued escalation of tensions would pose real risks,” he warned.
WTO economists calculate that “a complete breakdown in international trade
cooperation would see a sharp rise in tariffs, knocking up to 17 percent off
global trade growth, and 1.9 percent off overall global economic growth.
“These effects would cause significant disruptions for workers, firms, and
communities as they adjust to this new reality,” said Azevedo.
“Potentially millions of workers would need to find new jobs; firms would
be looking for new products and markets; and communities for new sources of
growth,” he added.
Responding to claims that unfair trade practices were going unpunished
under the current system, Azevedo said there needed to be political solutions
and he called on leaders to work towards them at next month’s G20 summit in
Argentina.
Trump has so far slapped tariffs on $250 billion worth of Chinese goods
imported by the US and threatened to go even further.
He has also boosted military support for China rival Taiwan and accused
China of interfering in US elections.
The US accuses China of rampantly stealing technology and seeking an
unfair trade advantage by forcing foreign businesses to work with local
partners, handing over their know-how in the process.
BSS/AP/HR/0908