The ongoing trade war between the United States and China will wreak havoc on the global economy, according to World Trade Organization (WTO) Director General Roberto Azevedo.
“On the trade war and how to stop it… it is not something a technical measure here or there is going to solve. This is a political situation,” he told at a press conference in Geneva on July 25.
As reported by Deutsche Welle (DW), Germany’s international broadcaster, Azevedo added that legal cases and “eye-for-eye” retaliation would only exacerbate the situation.
“A solution can only be found through high-level discussions and engagement,” he said.
According to DW, the latest development in the disagreement came on July 25, when US President Donald Trump accused China of a “vicious” attack on US farmers, using them as leverage a day after his administration announced an enormous aid package to farmers – Trump’s first round of tariffs having hit them the hardest.
Trump has blocked new appointments to the WTO’s highest court over fears they may side against the US in trade disputes. In response, Azevedo warned Trump that Washington would be left economically vulnerable if he continued to pursue his protectionist policies.
“Because then, I guarantee you, investors are going to pullback, the economy is going to lose steam and over time jobs will be lost, millions of jobs will be lost.”