Global trade wars risk 'millions of jobs' – WTO chief
LONDON (AFP) – Escalating trade wars "pose real risks" to the global economy, potentially threatening millions of jobs, head of the World Trade Organization (WTO) Roberto Azevedo warned in a London speech on Wednesday.
US President Donald Trump is locked in a trade war with China, rolling out billions of dollars in tariffs in a bid to tackle its trade deficit and rein in what Washington considers unacceptable Chinese trade practices.
Trump has also targeted the EU,
SINGAPORE (Reuters) – US Defense Secretary Jim Mattis will seek more resilient military ties during talks with his Chinese counterpart in Singapore, a US official said, as both militaries attempt to navigate mounting tensions.
Mattis saw firsthand last month how growing Sino-US friction could undermine military contacts when Beijing up-ended plans for an October and WTO director general Azevedo told business heads at the Mansion House speech that there appeared to be "no end in sight" to the tit-for-tat action, pleading with world leaders to negotiate.
"A continued escalation of tensions would pose real risks," he warned.
WTO economists calculate that "a complete breakdown in international trade cooperation would see a sharp rise in tariffs, knocking up to 17 percent off global trade growth, and 1.9 percent off overall global economic growth. meeting in China with Defense Minister Wei Fenghe, in apparent retaliation over US sanctions.
A meeting with Wei now appears set to take place on the sidelines of a gathering of Asian defense ministers in Singapore.
Randall Schriver, a US assistant secretary of defense who helps guide Pentagon policy in Asia, said making military-to-military ties with China
"These effects would cause significant disruptions for workers, firms, and communities as they adjust to this new reality," said Azevedo.
"Potentially millions of workers would need to find new jobs; firms would be looking for new products and markets; and communities for new sources of growth," he added.
Responding to claims that unfair trade practices were going unpunished under the current system, Azevedo said there needed to be political solutions and he called on leaders to work towards them at next month's less brittle would be crucial to helping reduce the chances of a devastating conflict.
“Two nuclear-armed powers with regional, if not global, interests - we need to make sure that when we step on one another’s toes, it doesn’t escalate into something that would be catastrophic,” Schriver told reporters traveling with Mattis.
Schriver said he believed that sentiment was shared by China’s military, noting that it recently requested Thursday’s talks in Singapore after Beijing decided against a planned Mattis-Wei meeting in China.
“I think the fact that he’s meeting with Minister Wei is some evidence that the Chinese are interested in keeping things normal and stable, as are we,” said Schriver, assistant secretary of defense for Asian and Pacific security affairs.
He said Wei had a standing invitation to visit the United States.
Military-to-military ties have long been one of the more fragile parts of the overall US-China relationship, with Beijing limiting contacts when tensions run high. That has been a source of major concern for years among US
officials, who fear an accidental G20 summit in Argentina.
Trump has so far slapped tariffs on $250 billion worth of Chinese goods imported by the US and threatened to go even further.
He has also boosted military support for China rival Taiwan and accused China of interfering in US elections.
The US accuses China of rampantly stealing technology and seeking an unfair trade advantage by forcing foreign businesses to work with local partners, handing over their knowhow in the process. collision or mishap could quickly escalate.
“What we want in terms of stability are regular interactions at senior levels so we have a good understanding of one another’s intentions, that we have confidence-building measures that will help us prevent an unintended accident or incident,” Schriver said.
“And, should one occur, that we have the ability to manage that so it doesn’t worsen.”
China has been infuriated by the United States putting sanctions on China’s military for buying weapons from Russia, and by what Beijing sees as stepped-up US support for self-ruled Taiwan, claimed by China as its sacred territory.
In a recent reminder of the risks amid rising tensions, the Pentagon this month accused China of an unsafe and unprofessional maneuver in the South China Sea that brought a Chinese ship dangerously close to a US Navy destroyer in international waters.
Mattis, speaking to reporters as he flew to Asia this week, rejected Chinese claims that the United States was acting aggressively and pointed the finger at Beijing.