Tit-for-tat trade sanctions threaten global economic growth

The tit-for-tat trade sanctions occurring between the world’s largest economies is a threat to global economic growth.

The World Trade Organization (WHO) found that between mid-October last year and mid-May this year G20 countries introduced 39 new trade restrictions, double the rate in the previous period.

The organization said economic growth was “in jeopardy” and urged for a “de-escalation”.

“This continued escalation poses a serious threat to growth and recovery in all countries, and we are beginning to see this reflected in some forward-looking indicators,” said WTO Director General Roberto Azevedo in a statement.

Azevedo added that the “marked increase in new trade restrictive measures among G20 economies” should be of “real concern” to the international community.”

“At a juncture where the global economy is finally beginning to generate sustained economic momentum following the global financial crisis, the uncertainty created by a proliferation of trade restrictive actions could place economic recovery in jeopardy,” the WTO report said.

“The worrying trend is the increase in trade restrictive measures which has come at a time of increasing trade tensions and associated rhetoric,” the WTO added.

 

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