WTO: ‘Clear’ risk of trade war happening

PANAMA CITY: There is a “clear” risk of a trade war happening because of protectionist policies, said World Trade Organisation (WTO) chief Roberto Azevedo on Wednesday.

The WTO’s director-general did not implicate any countries by name behind such policies, even though he was asked about the effects United States President Donald Trump’s “America First” stance could have on the global trading system.

“The risk of a trade war is very clear,” said Azevedo.

“Once a country, whichever one, applies unilateral measures, there is a response from others and we could see a domino effect,” he said. “The reality is that, at the end of the process, if we have a trade war everybody without exception will be worse off than when it starts.”

He was in Panama for meetings with government officials and business representatives.

“The problem we have is a global problem: we have an economy not growing sufficiently fast and that gives rise to temptations of unilateral protectionist actions,” he said. AFP