HSBC says multilateral trading system would survive Us-china trade war
HSBC, the market leader in global trade finance, expressed confidence that the World Trade Organisation’s (WTO) rulebased multilateral trading system is likely to survive the current trade war between the US and China with some changes.
Addressing the post-business session of the 48th Annual General Meeting of the Sri Lanka Shippers’ Council recently, HSBC Asia Pacific Global Trade and Receivables Finance Regional Head Ajay Sharma said, “We also believe that the multilateral trading system is likely to survive the current turbulence with some changes.”
He acknowledged that there are some encouraging developments particularly taking place in Asia Pacific, which is favourable for global trade.
He pointed out that the Trans-pacific Partnership without the US is expected to be signed next March, the recent negotiations of the Regional Comprehensive Economic Partnership are progressing, the ASEAN 2025 blueprint is developed and Singapore, Vietnam, Japan, Australia and New-zealand were continuing their dialog with the European Union.
“All these agreements will reduce the friction that exists in trade, making it easier for goods moving across boundaries of nations and create opportunities for all of us,” he said.
Referring to a recent survey conducted by HSBC, Sharma said, “We talked to 6000 customers. The feedback we get is, over 80 percent of them feel that there will be more trade. However, 70 percent of them feel the rise of protectionism in their markets but they also see some reform that can take place in their home markets, that is positive for trade.