United Nations: UN Secretary-General Antonio Guterres expressed concern about the potential economic downturn from the trade war, saying he "sincerely hopes" there won't be a recession due to its devastating impact on the most vulnerable populations.
“I sincerely hope that we will have no recession, because a recession will have dramatic consequences, especially for the poorest people in the world,” he said on Tuesday hours before President Donald Trump’s “reciprocal tariffs” were to come into effect.
“Trade wars are extremely negative. Nobody wins with a trade war. Everybody tends to lose”, he said while speaking to reporters.
He added, “I'm particularly worried with the most vulnerable developing countries, in which the impact will be more devastating.”
The trade war between the US and China escalates as President Donald Trump announces tariffs totalling 104% against China, effective Wednesday midnight. In response, Beijing vows retaliatory tariffs of 34%. Amidst this tension, the UN Conference on Trade and Development (UNCTAD) acknowledges that the "need for trade for reform is clear".
UNCTAD Secretary-General Rebecca Grynspan said, “Global trade rules must evolve to reflect today’s challenges, but they must do so with predictability and development at their core, protecting the most vulnerable.”
“This is a time for cooperation, not escalation,” she said.
WTO Deputy Director-General Angela Ellard warns that recent tariffs imposed by the US and other countries could shrink global merchandise trade volumes by around 1% this year. This marks a significant downward revision from the initial projection of 3% growth, representing a 4% decline.
Despite the attempts to undercut the WTO system, Ellard said that “74 per cent of global trade still flows under WTO Most-Favoured-Nation (MFN) terms”.
She highlighted the organisation's ongoing relevance, noting that China and Canada have initiated dispute resolution processes against the US. Both countries have requested consultations under the WTO framework, allowing 60 days for negotiation to resolve issues amicably. If negotiations fail, they can proceed to panel adjudication.
(inputs from IANS)