In this globalised age if any country is imposing trade barriers, then people should ask one question to WTO “what the hell of Free Trade Agreement (FTA)?”😡 Recently two powerful countries One capitalist (USA) and one communist (China) [in Winston Churchill language “capitalism behind communism”] imposed trade tariff on each other commodities. We will cover this issue Shortly.
What is an actual issue?🤔
It all started after the USA imposed a tariff on imported steel materials. President of USA supported this tariff with their “America First Policy”. After imposing this trade tariff UK, European Union (EU) and all countries which support FTA placed their concerns in front of WTO table. Suddenly yesterday China also took the revenge of America policy by imposing trade barriers on US imported products. Now here onwards there Will be the beginning of “trade war”(In USA president language😜) [Kim Jong was happy 😂as there will not be an immediate talk between North Korea and the USA bcoz of this issue. As usual, China always supported their small brother]
Consequences of the Trade war?😒
1) As trade war will not benefit from long-term goal, it will only create stagnation in both countries economy.
2) As per data of 2016 China’s export to the USA is 423 billi$ and the USA to China is 104 billion $ So there will be the massive setback to USA economy. China which is mass exporter may create dumping of products in USA market.
3) In the Indian context, India is exporting only 0.7% of steel to US market so the effect will be negligible. Another demand of steel like EU, UK will be affected more as they export a large percentage of iron to the USA.
4) If this issue not solved on the prior basis, then it may create a threat to WTO integrity.
1) WTO should urgently take a meeting of all members countries to solve this critical “Trade war” as all states are signed a treaty of FTA.
2) WTO also take a prior meeting on stock issues like Doha agreement (which deals with reducing trade barriers).
3) WTO also Request all countries (which formed their regional groups like BRICS, G7, ASEAN etc.) Instead of creating such regional groups which only support the closed economy must convert into one integrated Free market.
Sustainable Globalisation will be possible only if there will not be any trade barriers else there will be the only monopoly over the market.🤗