ENA Global 2025-04-11 16:12:30 <p><span style="font-size:14px"><strong>New Delhi, April 11 (KNN)</strong> The Director-General of the World Trade Organisation has issued a stark warning about the intensifying trade dispute between the United States and China, projecting potential severe consequences for the global economy.</span></p> <p><span style="font-size:14px">According to preliminary WTO projections, bilateral merchandise trade between the world's two largest economies could plummet by as much as 80 percent if current tensions continue to escalate. </span></p> <p><span style="font-size:14px">The Director-General emphasised that this conflict, involving economies that together account for approximately 3 percent of global trade, threatens to significantly undermine worldwide economic stability.</span></p> <p><span style="font-size:14px">The WTO analysis indicates that negative economic repercussions would extend well beyond the two primary parties involved. </span></p> <p><span style="font-size:14px">Developing economies, particularly least developed nations, stand to face substantial collateral damage from this trade conflict. </span></p> <p><span style="font-size:14px">Of specific concern is the potential fragmentation of global commerce along geopolitical boundaries, with WTO assessments suggesting that a bifurcation of the world economy into competing blocs could reduce global real GDP by nearly 7 percent over the long term.</span></p> <p><span style="font-size:14px">The Director-General highlighted trade diversion as an immediate threat requiring coordinated international action. </span></p> <p><span style="font-size:14px">The statement called for WTO members to address these challenges through enhanced cooperation and dialogue rather than continuing the current retaliatory approach.</span></p> <p><span style="font-size:14px">In concluding remarks, the Director-General underscored the critical importance of preserving the openness of the international trading system. </span></p> <p><span style="font-size:14px">The statement affirmed that WTO members possess the capability to safeguard the rules-based trading framework, with the WTO itself serving as an essential forum for constructive dialogue and resolution of these pressing issues.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 41713 https://knnindia.co.in/news/newsdetails/global/wto-warns-of-global-economic-fallout-from-escalating-us-china-trade-dispute 2025-04-11 16:12:30 knnindia.co.in