Trade war to hurt global growth: WTO

berlin — A full-blown trade war would have serious effects on global economic growth and there would be no winners of such a scenario, the directorgeneral of the World Trade Organisation (WTO), Roberto Azevedo, said on Tuesday.

Speaking at a Berlin industry event against the backdrop of growing trade tensions between China and the US, Azevedo said: “The warning lights are flashing. A continued escalation of tensions would pose an increased threat to stability, to jobs and to the kind of growth that we are seeing today.”

A full-blown global trade war with a breakdown in international trade cooperation would reduce global trade growth by around 70 per cent and GDP growth by 1.9 per cent, Azevedo said.

“There would be no winners from such a scenario and every region would be affected,” Azevedo said. The European Union itself would have about 1.7 per cent taken off its GDP growth, he said, adding: “Clearly, we cannot let this happen.”