Global trade faces turbulence: WTO Chief Warns of rising protectionism and fragmentation
The World Trade Organization’s Director General, Dr. Ngozi Okonjo-Iweala, has highlighted concerns over global trade amid rising protectionism and fragmentation.
She acknowledges the challenges posed by recent tariff escalations, such as the EU’s imposition of up to 37.4% provisional tariffs on Chinese electric vehicles and the US’s 100% tariffs on the same.
Both actions stem from accusations of unfair subsidies benefiting Chinese industries.
The trade tensions reflect broader geopolitical shifts, including efforts by the US and EU to reduce economic reliance on China, particularly in key sectors like green technology.
Meanwhile, the WTO and IMF warn that these disputes could cost the global economy trillions of dollars in lost output.
Efforts are ongoing to manage these tensions through dialogue, but retaliatory measures are being considered, underscoring the complexities of modern trade relations.
