The optimism that US commercial policies can lead to lower global tariffs is wrong. The low Trump WTO is symptomatic of a broader crisis for multilateralism. Countries will face challenges to reduce tariff rates given the WTO demands on national treatment. The negotiations and implementation of free trade agreements (ALC) may take years, extending the period of uncertaintyStandard Chartered, Madhur Jha and Philippe Dauba-Pantanacce economists point out.
From multilateral to bilateral
“Clients are increasingly asking if US commercial policies could really benefit global trade by significantly reducing tariff levels in general. We believe that such optimism is wrong; rather, the risk is a prolonged period of uncertainty that is detrimental to the global economy. The commercial war launched by the US administration has been presented with various justifications and objectives Deep that underlies Trump’s approach to trade and foreign affairs: he and his administration are deeply skeptical, if not openly opposite, to the concept of multilateralism. Contributions to WTO after undermining its appeal body for years. “
“The desire to avoid US punitive tariffs will probably lead to membership countries to try to reduce tariff levels for US reasons. Uncertainty will probably prove to be a significant ballast for growth.“
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
