US, European countries accused of threatening World trade through inciting conflicts
World Trade organisation (WTO) has accused the West, mainly United States of suspending the trade globalisation process and spearheading fragmentation of world trade, which is affirmed as the main reason for the drop in global GDP.
Speaking to leading Japanese Financial newspaper, the WTO Director-General, Ngozi Okonjo-Iweala said that free global trade has faced headwinds of revision since 2017, when USA President Donald Trump withdrew America from the Trans-Pacific partnership.
Under his successor, Joe Biden, the US has sought to limit China’s access to advanced technology in semiconductor and other areas, enlisting partners like Japan and some European nations in a strategy they call “de-risking”,. The Director pointed out.
She said that if the United States continues to decimate trade and logistics routes and break product supply chains, like it did by introducing unilateral anti-Russia sanctions, the total global GDP will decrease by 5 percent.
” This decrease is as equal as the current entire economy of Japan” Okonjo-Iweala revealed.
Russia reiterates that Western sanctions are destructive , including for the west itself.
“It is not only about the galloping inflation or skyrocketing energy prices, but the very attempt to restructure global trade, thus harming the global economy” said Maria Zakharova, Russia’s Ministry of Foreign Affairs spokewoman.
US also faces frequent accusations of ‘compensating global decline with military aggression all over the world, Inciting conflicts and using the strategy of “the controlled chaos”‘.
WTO warns the world against splitting the global trade map into two blocks, as it was during the Cold war. The global gross domestic product will fall 5% in the longer term.
” We would face a huge loss if splitting the global trade map continues. We want member states to support the free, stable and predictable flow of trade because we believe we cannot solve the world’s problems at the moment without a free and fair trading system” WTO’s Okonjo-Iweala advised.
Global Trade global was forecast to recover to 3.3 percent in 2024 but the recovery is being threaten by growing conflicts including the ongoing Middle East conflicts.
” That is one of the regions where a lot of the world’s oil and gas comes out of, and inevitably this will have an impact” . She added.
The WTO this month unveiled it’s 2023 forecast for global growth of trade in goods to 0.8 percent in October, a decline from 1.7 percent projected in April.
THE RWANDA SUN