Growth forecasts for global trade growth have been drastically reduced due to Trump’s trade wars
The World Trade Organization (WTO) lowered its global trade growth forecast due to Donald Trump’s trade wars.
The WTO, based in Geneva, predicts a global merchandise trade volume of around 3.9 percent by 2019, compared to 4.4 percent in April.
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Since then, Donald Trump, citing a national security rationale, has levied imports on steel imports into the United States and has threatened to collect royalties on EU car imports. And this month, he imposed tariffs on another $ 200 billion of Chinese imports.
The WTO said the “risk of degradation” of a trade war it identified in April has now materialized.
“While trade growth remains strong, this deterioration is a reflection of rising tensions between major trading partners,” said WTO Director-General Roberto Azevêdo.
“More than ever, it is important for governments to overcome their differences and exercise restraint.”
According to the WTO, world trade in goods grew 4.7% in 2017 as the global economy gained ground.
It was the fastest rate since 2010.
The United States undermined the functioning of the WTO by blocking the appointment of judges to its arbitration board.
In August, President Trump threatened to pull the US out of the WTO “if they do not reform”.
Nevertheless, hard-line Brexitians urge the British government to leave the single market and the EU’s customs union in March next year, without a withdrawal agreement or trade with the rest of the world without complying with the rules of the European Union. WTO. prevent the worst forms of discrimination in trade.
The WTO said recent downward revisions to its trade forecasts were in line with its World Trade Outlook indicator, which indicated a slowdown since the first quarter of 2018.